Kaduna Electric has come under heightened scrutiny as the Kaduna State Internal Revenue Service (KDIRS) instructed Ministries, Departments, and Agencies (MDAs) to process all outstanding liabilities owed by the company.
This was made known in a statement signed by Jerry Adams, the Executive Chairman of KDIRS.
The directive followed the recent disconnection of the Kaduna State Government House by Kaduna Electric over an alleged debt of N2.9 billion.
Adams said KDIRS invoked Section 3, Subsection 2 (b) and (c) of the Kaduna State Tax Codification and Consolidation Law, which mandates the collection and enforcement of taxes, levies, fees, and rates due to all MDAs and local governments in the state.
According to him, the sealing of the Kaduna Electric Distribution Company (KAEDCO) head office was due to a N600 million tax liability. “However, other levies, fines, and rates owed by the company remain unresolved. Consequently, KDIRS has directed the following state MDAs to submit their outstanding liabilities for enforcement:
“Kaduna State Geographic Information Service (KADGIS), Kaduna State Water Administration Corporation (KADSWAC), Kaduna State Water Regulatory Commission and Kaduna Environmental Protection Agency (KEPA)”
Adams then reaffirmed the agency’s commitment to equitable taxation. He emphasized that the Service would not impose excessive tax burdens on the poor but would target tax-evasive and non-compliant organizations and high-net-worth individuals.
“The Kaduna State Internal Revenue Service is dedicated to ensuring fair taxation and will take necessary actions against entities that fail to comply with tax laws, irrespective of their status,” said Adams.
He concluded that KDIRS remains open to dialogue with KAEDCO and all relevant stakeholders to resolve these issues amicably. This development highlights the ongoing challenge of balancing investment incentives with strict enforcement of tax compliance in Kaduna.
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