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KGIRS expands tax footprint across the state, clarifies consolidated tax, waives penalty

The Executive Chairman,Kogi State Internal Revenue Service (KGIRS), Sule Salihu Enehe, PhD, has held an interactive meeting with the Tailoring Association of Nigeria, Kogi State Chapter, to clarify tax assessment, filing obligations, and the new consolidated billing system under the tax reform.

The Executive Chairman of the Revenue Service, was ably represented by the Director of Income Tax. Mr Emmanuel Yusufu.

In his remarks, the Chairman disclosed that KGIRS remains the only authority empowered by law to issue tax assessment in the state.

He explained that although KGIRS works with the Ministry of Commerce and other Ministries, Departments and Agencies (MDAs), all assessments must be authorised from the KGIRS office.

Dr. Enehe noted that in the past, some MDAs issued separate assessments, but the Service has since taken over the responsibility in line with the law. He added that while some of those practices are gradually receding, any assessment received from any other source outside KGIRS should be reported to the Service.

He further explained that under the tax reform, Kogi State has moved to a consolidated assessment system.

“All MDAs that collect revenue should no longer go to the taxpayer individually, noting that everything has been consolidated.

Now, all levies and taxes relating to MDAs have been harmonised into one. What you should receive is just one bill containing all the revenue lines you are supposed to pay for. Anything contrary to this is somebody doing his own thing.

On the penalty reflected in some assessments, Dr. Enehe, explained that the law provides that taxpayers must file their returns between January and March every year.

He said KGIRS extended the deadline by one month this year and widely publicised it, but taxpayers who failed to file were liable to a penalty in line with the law. However, the Executive Chairman of KGIRS, Dr. Enehe, graciously approved the waiver of the penalty.

He also clarified that tax is charged on personal income, not on the business name or company alone.

He stressed that the law looks at income from all sources, including tailoring services, rent, investments, shares, and other earnings, and not just one stream of income.

He further corrected the misconception that registering a business with the Corporate Affairs Commission (CAC) exempts a person from paying personal income tax.

Registering with CAC does not exempt you from paying personal income tax. What we are taxing is your personal income. Registering a company is an additional responsibility, because you will also file returns to the Nigeria Revenue Service(NRS)

He assured the tailors that KGIRS carries out its work with a human face, noting that persons whose annual income is below N800,000 are exempted from paying tax.

In their response, leaders of the Tailoring Association commended KGIRS for the enlightenment, describing the session as educative and timely.

They, however, made three major requests: an official notice or letter from KGIRS confirming that tax should be paid to KGIRS alone, to be shared on their platforms; a reduction of the payable assessment from N20,000 to N10,000, with some members pleading for N5,000; and approval for the union to collect taxes from members and remit to the government in each member’s name.

They also appealed that full enforcement should commence in January 2027, to give them time to educate members across the state.

Responding, The Chairman said, the request for an official document would be considered, noting that the position of the law is already clear that KGIRS is the sole collecting authority.

On the reduction request, he explained that, it will be further look at.

He urged the association to provide a comprehensive database of its members across the state, to enable KGIRS identify low-income earners for exemption and ensure fair assessment based on actual income.

On collection through the union, He said it was workable and a win-win arrangement, provided there is a clear understanding and accountability, recalling that some associations in the past collected from members without remitting.

The meeting ended with a renewed commitment by both sides to sustain engagement, deepen tax education, and ensure voluntary tax compliance .

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