Tax agency orders MDAs to pursue Kaduna electric debt

The Kaduna Electric Distribution Company has come under heightened scrutiny as the Kaduna State Internal Revenue Service instructed Ministries, Departments, and Agencies to process all outstanding liabilities owed by the company.

The Executive Chairman of KDIRS, Jerry Adams, gave the directives in Kaduna on Sunday.

The Punch Online reports that the directive followed the recent disconnection of the Kaduna State Government House by Kaduna Electric over an alleged N2.9 billion debt.

However, Adams said KDIRS invoked Section 3, Subsection 2 (b) and (c) of the Kaduna State Tax Codification and Consolidation Law, which mandated 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 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),” he added.

Adams reaffirmed the agency’s commitment to equitable taxation while emphasizing 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,”he said.

He added that KDIRS remained open to dialogue with KAEDCO and all relevant stakeholders to resolve issues amicably.

Adams noted that development highlights the ongoing challenge of balancing investment incentives with strict enforcement of tax compliance in Kaduna.