Why Kano revenue drops in two years



Nasiru Yusuf

The Director Personnel Income at Kano Inland Revenue Service (KIRS), Malam Muhammad Aminu Abdullahi Bichi has attributed the drop in the Internally Generated Revenue in the state  from 2020 to the year 2021 to COVID-19 pandemic.
ALL IN ONE reports that the director revealed this during a Tax Summit – Citizens Session organised by PERL FCDO in collaboration with Tax Justice and Governance Platform held in Kano metropolis.
He recalled that the pandemic has affected not only the country, but global economy.
The director explained that this necessitated the state government to introduce Covid-19 tax relief to cushion the effect of the pandemic.
According to him, many taxes were reduced to as low as 50 per cent to support businesses to recover from the impact of the disease.
Participants

“Last year, we experienced COVID-19 pandemic. COVID-19 has affected the economy not even in Kano State, but globally.
“This led to Covid-19 tax relief where certain percentage of tax was reduced.
“Some were reduced to 50 per cent and some were reduced to 25 per cent.
“I believe these are some of the factors that led to drop of collection. But with economic recovery from Covid-19, believe things will definitely improve,” Malam Bichi said.
Participants
The director expressed optimism that with the introduction of Treasury Single Account, the state revenue would bounce back to its former status.
“There is hope bearing in mind the implementation of Treasury Single Account where all authorised tax collected by MDAs will be sent to single account,” he said.
The patron of Danbatta Traders Association Lawan Dangaji Danbatta appealed to Kano state government to provide basic infrastructure in markets and business places to encourage traders to pay their promptly.
Alhaji Lawan Dangaji Danbatta
In his remarks, the state team leader Partnership to Engage, Reform and Learn (PERL), Isa Surajo, said the meeting was to bring citizens and all stakeholders in tax-related matters under one roof to brainstorm and forge a way forward.
Malam Isa Surajo
“Tax provides resources for government to provide development. Once the government is struggling to get money that will be used to improve the lives of the citizens, it becomes so challenging.
“One of the strategies, we believe is to get those who pay the tax to get involved on how best these resources could be raised, so that social services and other development required by the citizens would be provided by the government.
“Of recent, we have noticed how budget deficit has been affecting the development of Kano State and Nigeria.
“But by getting citizens to participate to talk about the tax and how best to raise the tax for the government, we will get enough money to get children to school and make sure basic healthcare delivery services are provided.
“This is because it is only when you have educated and healthy citizens, the development is ensured,” Malam Surajo said.
Presenting a paper entitled: ‘Challenges and Opportunities of IGR in Kano State: Preliminary Findings,’  Abdulsalam Muhammad Kani, identified poor capacity of tax collectors and high cost of tax collection as major challenges of tax collection in the state.
Other challenges identified, according to Kani, include non punishment or sanction of tax defaulters, inadequate oversight by the legislature on tax issues and failure to create more departments in the Kano Inland Revenue Service (KIRS).
The first Kano tax summit is an avenue to broaden the discourse on taxation and to explore issues such as tax policies and practices, emerging development in the tax system and implication for resourcing public service delivery and development.

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