The Kaduna State Internal Revenue Service (KADIRS) on Wednesday sensitised taxpayers in the Kaduna Central Senatorial Zone on digitisation of tax administration and other reforms aimed at promoting voluntary tax compliance.
The Executive Chairman of the service, Dr Zaid Abubakar, explained at the engagement in Kaduna that the goal was to interact with taxpayers and get feedback on challenges affecting voluntary tax compliance.
The News Agency of Nigeria (NAN) reports that the sensitisation has as its theme, “Digitisation of Tax Administration, Taxpayer Education and Voluntary Compliance: Panacea for Fiscal Resilience Towards Building a Modern Society”.
Abubakar explained that the event was supported by Christian Aid and Partnership to Engage, Reform and Learn (PERL), a UK Foreign, Commonwealth and Development Office (FCDO) governance programme.
According to him, the engagement is necessary to enable the service to interact and document challenges the taxpayers want to be addressed, especially issues of remittance of tax returns and payment.
“Our major target is filing of tax returns, payment and registration of new taxpayers which are critical to boosting revenue generation for development in the state.
“So far, taxpayers’ responses have been positive and the feedback will help us improve our processes and deliver hitch free tax administration service,” he said.
He disclosed that although the major source of tax revenue for the state was Personal Income Tax, efforts were ongoing to optimise collection of taxes from other revenue lines with huge potential.
He said that KADIRS would strengthen its taxpayer education and sensitisation for them to know why they should pay tax, when to pay, where to pay and how to pay.
He said that similar engagement would be held in Kaduna North and Kaduna South Senatorial Zones, in order to carry every taxpayer along.
Mr Josiah Abu, Zonal Coordinator, Federal Internal Revenue Service, noted that voluntary tax compliance has remained a serious challenge in tax administration both at states and federal levels.
Abu, who was represented by Mr Musa Agaie, Senior Manager Tax, FIRS Kaduna Zonal Office, said that automation of tax processes was the way to go, stressing that KADIRS was ahead of other states in that.
“I commend Kaduna State for leading other states in strengthening modern tax administration to provide seamless service to taxpayers,” he said.
During plenary, some of the participants accused the Kaduna State Traffic Law Enforcement Authority of harassing motorists in a bid to generate revenue for the state.
Responding, the authority’s Chief Marshal, Mr Idris Shehu, said that on the contrary, the concern of KASTELA was to ensure safety of motorists by enforcing traffic laws and regulations.
“Nobody will be fined if every road user obeys all traffic laws, but if anyone disobeyed the rules, we will have no option but to fine him in accordance with the provision of the law and generate revenue for Kaduna State,” he said.
Also speaking, Mr Joshua James, Citizens Co-Chair, Open Budget of the Kaduna State Open Government Partnership commended KADIRS for sensitising taxpayers, saying it was critical to building trust and promoting voluntary compliance.
James said that taxpayers, particularly small business owners in communities, needed to know why they should pay tax, how much to pay, when to pay and where.
“If people have all the information about tax processes, it will go a long way in boosting their confidence and engender voluntary compliance.
“The OGP will partner with KADIRS to support in sensitising citizens about tax administration and the need for tax compliance in particular, for the government to generate the needed resources to carry out development projects. (NAN)