To boost Internally Generated Revenue (IGR) for the development needs of the Federal Capital Territory, Minister of the FCT, Nyesom Wike, has ordered strict implementation of the Personal Income Tax and the FCT Internal Revenue Service Acts 2015.
To this effect, all Ministries, Departments, and Agencies (MDAs) Commercial banks; and FCT Secretariats, Departments, and Agencies (SDAs) have been enjoined to ensure strict compliance with the laws particularly section 85 of the Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act, 2015.
Both sections provide for demand and verification of Tax Clearance Certificates (TCC), by Federal Government Ministries, Departments, Agencies, Commercial Banks, and FCT Secretariats, Departments, and Agencies before any transactions are allowed.
Penalties ranging from N1,000,000 fine to three years jail terms as provided in the Acts await defaulters as the new revenue generation exercise takes off.
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Mandate Secretary of the Economic Planning, Revenue Generation, and Public Private Secretariat, Chinedum Elechi, at a press conference in Abuja on Monday disclosed that Wike “has approved the implementation of Section 85 of Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act, 2015.”
Elechi warned that following Section 85 of the PITA, anyone who provided false information or obtained a TCC through forgery or falsification was liable to a fine of N50,000 (Fifty Thousand Naira) or a three-year jail term or both upon conviction.
He added that a government entity or organisation that failed to verify a TCC was liable to a fine of N5,000,000 or a three-year, jail term or both, upon conviction.
The EPRGPPP Secretary also explained that Section 31 of the FCT-IRS Act provided that all SDAs, corporate bodies, or any person empowered by law, shall demand a TCC from any person or enterprises for the last three years “preceding the current year of assessment as a precondition for transacting any business in the FCT.”
Elechi appealed to residents to pay their taxes and obtain their TCCs, noting that “Taxes are essential to the foundation of any government, and it is important that everyone pays their fair share. Payment of tax is a civic duty and responsibility. Implementation of these laws is intended to ensure that all eligible taxpayers in the FCT comply with their tax obligations.”
The FCT minister, at a session with revenue-generating agencies barely a month ago, had hinted that his target is to raise the Internally Generated Revenue (IGR) of the FCT above N250 billion a month.
Accordingly, the minister said all revenue-generating agencies in the FCT are being mobilised for serious improvement.
Elechi at a meeting with revenue-generating agencies said, “We think that FCTA can do N250bn a month, on a good day and that is the sort of target we are looking at.
“We can even do N300bn a month in some good periods. So that is what we want to work out. However, in trying to grow revenue, it will also have a human face, because we are going to be dealing with issues of multiple taxation, so things are going to be streamlined. We are going to make sure that taxation has a human face,” he said.
Elechi stressed the need for the citizens to perform their civic duty of paying their taxes when due.
He explained that the meeting was to find ways to improve IGR in the FCT, which he said was pivotal to the aspiration of making Abuja one of the most developed capital cities of the world.
