Kaduna State launches tax reforms to boost revenue through digital compliance and expanded taxpayer base
Kaduna State Internal Revenue Service (KADIRS) is implementing tax reforms to expand the state's internally generated revenue (IGR) through a broader tax base and digital tax administration.
In Brief
- •Kaduna State Internal Revenue Service (KADIRS) is implementing tax reforms to expand the state's internally generated revenue (IGR) through a broader tax base and digital tax administration.
- •The reforms are anchored on the implementation of the Nigeria Tax Act, 2025, and the Nigeria Tax Administration Act, 2025, which took effect on January 1, 2026.
- •Kaduna State Commissioner for Finance, Ibrahim Muhammad, emphasized the need to widen the net of taxpayers rather than increase the tax burden on existing ones.
- •KADIRS is focusing on accurate taxpayer registration, improved assessment and collection, reliable data management, and the integration of government revenue records.
- •The service has established a standing committee to address taxpayer complaints and introduced additional channels for receiving grievances.
Why It Matters
The tax reforms in Kaduna State aim to strengthen domestic revenue mobilisation, which is crucial for financing public services and meeting the state's development obligations. Given the limitations of federal allocations, these reforms are essential to ensure that the state can provide adequate services to its citizens. The focus on digital tax administration and improved taxpayer compliance is expected to enhance the efficiency and transparency of the tax system, thereby boosting the state's revenue and fostering public confidence in the tax system.
Key Details
- Reforms Implementation Date
- January 1, 2026
- Primary Focus
- Expanding the tax base and digital tax administration
- Key Priority
- Widening the net of taxpayers rather than increasing the tax burden
- Critical Components
- Accurate taxpayer registration, improved assessment and collection, reliable data management, and integration of government revenue records
Context & Background
Kaduna State has been facing challenges in revenue mobilisation, particularly due to the limitations of federal allocations. The implementation of the Nigeria Tax Act, 2025, and the Nigeria Tax Administration Act, 2025, provides a framework for the reforms aimed at improving tax administration and revenue collection.
Original Reporting & Sources
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