IGR: Kaduna moves to boost tax compliance rate, slashes ground rent penalty from .5m to 50,000

September 18, 2024
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The Kaduna State Government has reduced the penalty for ground rent registration from N500,000 to between N50,000 and N180,000, depending on the location of the property.
 
With over 3,000 registered property owners spread across the 23 local government areas of the state, the government believed the reduction would increase the Internally Generated Revenue (IGR) drive of the state. 
 
Speaking on the sideline of the 2025-2027 budget defense in Kaduna, the Director General of Kaduna Geographic Information Service (KADGIS), Dr. Bashir Garba Ibrahim, said Governor Uba Sani approved a reduction in the penalty to encourage property owners to register their land.
 
The move is aimed at increasing internally generated revenue through increased registration and payment compliance.
 
According to him, the reduction has sparked interest among property owners, with 25 previously uncaptured areas now ready for registration.
 
He further added that the state has also introduced discounts, including a 15% discount for landowners, installment payments, and a 20% discount for upfront payments over five years.
 
“The Governor has approved the reduction in the ground rent penalty and given the people in Kaduna communities the opportunity to register their land.
 
“Before now, the penalty used to be N500,000, but that has been reduced to between N50,000-180,000 depending on the location,” Bashir stressed. 
 
Commissioner for Planning and Budget Commission in the State, Mukhtar Ahmed Monrovia emphasised that the goal of the budget defense is to surpass the previous year’s budget performance, with 48 revenue-generating agencies, nine of which have already exceeded 70% of their targets.
 
“In Kaduna State, budget defense is an annual session where Ministries, Departments, and Agencies (MDAs) brief the economic committee on what they have done in terms of revenue if they are income generating, and expenditure for those that are strictly expenditure. 
 
“We look critically at their performance in the current budget and what they intend to do the following year. The whole idea is to have a better budget than that of the outgoing year.
 
“We have about 50 revenue-generating agencies. Unfortunately, only about nine of them are above 70 percent target while others are lagging. So, we are looking at it together to see what we can do to address their challenges. 
 
However, revenue-generating usually has better performance towards the end of the year, so we are hopeful that by the end of the year, they will do better.

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