The Kaduna State Internal Revenue Service (KADIRS) has taken decisive action by sealing several prominent businesses, including the Bank of Agriculture (BoA) and Hamdala Hotels, as part of a crackdown on unpaid Land Use Charge (LUC) debts totaling over N1.5 billion. This enforcement operation, which began on November 26, 2024, targeted multiple establishments located along Yakubu Gowon Way in Kaduna metropolis.
Among the businesses affected are Keystone Bank Plc, Unity Bank, FCMB, Zenith Bank, and Chicken Republic. The sealing of these properties is a result of accumulated debts that KADIRS claims have not been addressed despite numerous demand notices sent to the respective businesses. Aisha Ahmad, KADIRS’s Board Secretary and Legal Adviser, emphasized the legal basis for this action. "We have been left with no choice but to take this drastic measure to recover the debt owed to the state," she stated. Ahmad highlighted that the enforcement is backed by Section 104 of the Personal Income Tax Act and Section 24 of the Kaduna State Tax Codification and Consolidation Law, 2020.
The prominent Hamdala Hotel was specifically noted for its significant LUC liability of approximately N115 million. Ahmad explained that the accumulated liabilities were established by the Kaduna State Geographic Information Service (KADGIS), which conducted assessments leading to these actions. "We are not going to be intimidated by anyone or any organization. We will continue to take all necessary measures to recover the debt owed to the state," she added.
This enforcement exercise is expected to last a week, with KADIRS planning further actions across major cities in Kaduna State to ensure compliance with tax obligations. The agency's chairman has reiterated the importance of these collections for funding essential infrastructure projects within the state, urging all taxpayers to settle their dues promptly to avoid similar repercussions in the future.
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