Kano State Internal Revenue Services (KIRS),has described covid-19 pandemic as the major factor for the decrease in internally generated revenue (IGR) in the state.
The Director, Personal Income at Kano Inland Revenue service, Muhammad Aminu Bichi stated this while addressing participants at a Tax Summit, citizens session organized by PERL – FCDO in collaboration with Tax Justice and governance platform, held in kano.
According to the director, covid -19 pandemic has affected the world socially and economically.
Muhammad Aminu Bichi pointed out that effects of the global pandemic necessitated the state government to introduce covid-19 tax relief.
He said, many taxes were reduced to as low as fifty percent to enable businesses recover from the impact of covid-19.
The director expressed hope that the introduction of Treasury single account would revive revenue generation and checkmate leakages that lead to revenue decline.
“Covid-19 has affected the economy not only Kano state but globally. There is hope bearing in mind the implementation of Treasury single account where all authorized tax collection by MDAs will be sent to a single account”
Earlier in his remarks, the state team leader Partnership to Engage, Reform and learn (PERL),Malam Isa Surajo said the summit was organized to bring citizens and all stakeholders to find lasting solution to tax related matters.
He explained that, tax deficit has been affecting the development of Kano state and Nigeria, which necessitated the urgent need for citizens and stakeholders to participate and brainstorm on how to raise tax as well as effective use of the revenue generated.
Malam Surajo maintained that, effective collaboration and utilization of tax, leads to good governance and accountability where social services and other development required by the citizens are provided by government..
“Tax provide resources for government to provide development.Once the government is strugulling to get money that will be used to improve the lives of the citizens,it becomes so challenging”
Presenting a paper titled: Economic Resilience in covid-19 era:Issues, challenges and Policy option: A lecturer with the department of Economics, Bayero University Kano, Dr. Muhammad Sagagi who is also the chairman plenary session of the summit, called for the review of tax collection strategy.
He charged states and federal government to diversify sources of revenue, optimize potentials of existing revenue sources and ensure judicious and responsible use of revenue collected.
” One of the reasons for not implementing tax recommendations was due to inconsistency of local government chairs, ie changes of government leadership as a result of various elections”.
The two days Kano tax summit-citizens session was attended by over 80 participants drawn from formal and informal sector, media and all relevant t stakeholders in tax related matters.
KHADIJAH ALIYU