Ganduje Introduces 5% Consumption Tax in Kano

By Dipo Olowookere

Kano State Governor, Mr Abdullahi Umar Ganduje, has approved the introduction of five percent tax on goods and services consumed in the state called consumption tax.

Director of Legal Services and Enforcement at the Kano State Internal Revenue Service (KIRS), Mr Adamu Mohammed, who made this disclosure at an event in the state, explained that the consumption tax was introduced to increase the Internal Generated Revenue (IGR) of Kano State.

Mr Mohammed said emphasised that the, “Consumption tax is a 5 percent deduction payable by consumers of goods and services including hotels, restaurants, entertainment centres, shopping malls, event centres.”

Speaking further, he stressed that the new tax was different from the Value Added Tax (VAT), which 5 percent payable by the business owner to the Federal Government.

He explained that the business operators would serve as collection agents of the consumption tax on behalf of the KIRS.

It was gathered that the new consumption tax law was gazetted last week and would be applied on hotel services, event centres, supermarkets and shopping malls as well as other retail outlets across the state.

End users of goods and services in the state would be charged extra 5 percent over the original price of any services or product they purchase which would be remitted on monthly bases to state revenue services.

Implementation of the new law commenced in July 2017.