The Federal Capital Territory Administration (FCTA) said it is set to ensure the implementation of the Personal Income Tax (PITA) and the FCT Internal Revenue Service Acts 2015, with a view to improving the revenue base of the territory.
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, and Agencies, commercial banks, and FCT Secretariats, Departments and Agencies before any transactions is allowed.
Speaking at a press briefing in Abuja on Monday, the Mandate Secretary of the Economic Planning, Revenue Generation, and Public Private Secretariat, Hon. Chinedum Elechi, disclosed that the FCT minister, Nyesom 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 in accordance with Section 85 of the PITA, anyone who provided false information or obtained a TCC through forgery or falsification, is liable to a fine of N50,000, or a three-year jail term or both, upon conviction.
He added that a government entity or organization that failed to verify a TCC is 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”.
The said transactions include Certificate of Ocupancy, award of contracts, approval of building plans, application for FCTA loan for housing, business or any other purpose, registration of motor vehicles, among others.
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 had at a meeting with revenue generating agencies stated: “We think that FCTA has the capacity to do N250 billion a month, on a good day and that is the sort of target we are looking at.
“We can even do N300 billion 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.
Mr Elechi stressed the need for the citizens to perform their civic duty of paying their taxes as at 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 developed capital cities of the world.