Kaduna aligns new tax law to ease burden, drive revenue growth – KADIRS

The Kaduna State Internal Revenue Service (KADIRS), said it has aligned its new tax law with the national reforms to ease burdens on low-income earners and businesses while strengthening revenue generation, compliance, and efficient public financial management systems.

The Executive Chairman of the KADIRS, Mr Jerry Adams, said this on Thursday in Zaria, at the first quarter stakeholders engagement 2026.

Adams was represented by the KADIRS Executive Director Revenue Operations, Dr Muhammad Lawal.

The theme of the engagement is “Navigating the new tax landscape: opportunities and challenges.”

The engagement also has the topic, “To explore the key provisions of the new tax law, its impact on businesses, individuals, and strategies for compliance and dealing with misinformation”.

Adams outlined economic pressures including declining oil revenues, rising debt, inflation, and difficult fiscal realities.

He said these conditions necessitated deep reforms, particularly in revenue generation, to free up resources, strengthen public financial management, and improve delivery of public goods and services.

Adams traced the reform timeline to 2023, culminating in the signing of the new tax law in June 2025.

He explained that sub-national governments are aligning their laws, with Kaduna State emerging as the first to fully harmonise its tax system with national provisions after delaying earlier amendments to ensure proper integration.

Recalling past efforts, he noted that Kaduna had pioneered tax harmonisation in 2016 with an amendment in 2020, positioning the state as a leader in modern tax administration.

He emphasised that the philosophy of the new law is to “tax the fruits, not the seed,” allowing low-income earners and small businesses breathing space while expanding reliefs and simplifying obligations.

Adams listed new benefits including rent relief, mortgage interest relief, life assurance relief, and a structured presumptive tax framework that exempts small businesses earning below twelve million naira from certain taxes.

He said the reforms also promote harmonisation, consolidation, and the integration of technology into tax administration to improve efficiency and transparency.

Addressing misinformation, he dismissed claims of arbitrary government access to citizens’ bank accounts, noting such narratives have created unnecessary fear and tension within the economic space.

He urged stakeholders to actively participate, ask questions, and provide feedback, stressing that quarterly engagements are critical to improving compliance and enhancing tax service delivery.

Adams, however, said that while challenges exist, the new law presents significant opportunities that stakeholders must collectively harness to strengthen the economy and public finance systems.

Earlier, KADIRS Executive Director, Standard and Compliance, Alhaji Ali Gora, said Nigeria’s evolving tax reforms mark a significant turning point in Kaduna’s economic and regulatory environment.

He said that the changes reshape business operations and civic responsibility.

Gora added that the reforms reflect a shift in how the government drives sustainable development.

He, therefore, said the engagement is timely and necessary to explore provisions, understand impact, and share practical compliance strategies.

He said misinformation spreads easily, so the forum helps separate facts from assumptions and builds the right knowledge.

“The reforms bring challenges but also opportunities for transparency, growth, and participation,” Gora said.

Our correspondent, reports that Prof Muhammad Bagudu, the Head of the Department of Accounting and also the Dean of the Faculty of Management Sciences in ABU Zaria, delivered the lead paper.

He presented on the topic. “To explore the key provisions of the new tax law, its impact on businesses, individuals, and strategies for compliance and dealing with misinformation”.

A panel session was also held, comprising participants from Nigerian Bar Association, Kaduna State Traffic Law Enforcement Agency (KASTLEA), Association of National Accountants of Nigeria (ANAN) and KADIRS.

They discussed practical approaches to compliance, public awareness, and the role of technology in revenue administration.