In a dramatic turn of events, Kaduna Electric disconnected power to the Kaduna State Government House following the sealing of its office by the state’s Internal Revenue Service over unpaid taxes.
The Kaduna State Internal Revenue Service announced the closure of Kaduna Electricity Company Plc’s office on Friday, citing unpaid taxes totaling N600 million. The decision was made under Section 104 (1) & (4) of the Personal Income Tax Act, 2011, and Section 37 (3) & (4) of the Kaduna State Tax Codification and Consolidation Law, 2020, which allow for enforcement of tax compliance.
Zakari Jamilu Muhammad, Head of Corporate Communications for the revenue service, explained that the premises were sealed due to significant tax liabilities, as authorized by a court order. "The Service secured a court order for the immediate closure and taking over of the company’s property until all unpaid taxes are settled," the statement said.
In response, Kaduna Electric announced that it had disconnected electricity supply to the Kaduna State Government House and other state offices over unpaid bills totaling N2.9 billion. The utility company revealed this in a statement on Friday, highlighting the growing tensions between utility providers and state governments.
This tit-for-tat action underscores the escalating conflict over financial obligations and tax compliance in Kaduna State, with both parties entrenched in their positions over substantial unpaid debts.
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