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Home Economy/Technology

FCT minister harps on tax compliance

Tax

The Matters Press by The Matters Press
December 15, 2022
Reading Time: 3 mins read
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2020 Finance Bill prescribes tax incentives

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The FCT Minister, Alhaji Muhammad Bello, has reiterated the need for residents to comply with tax payment or risk severe penalties as provided by the law.

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Bello said this at a Town Hall Meeting organised by the FCT Internal Revenue Service (IRS) in Abuja.

The theme of the meeting is “Demand and Verification of Tax Clearance Certificate (TCC) by Ministries, Departments and Agencies (MDAs), Secretariat, Department and Agencies (SDAs), commercial banks and corporate bodies.

Bello, who was represented by the FCT Administration Permanent Secretary, Mr Adesola Olusade, said, “I want to use this opportunity to send a note of warning to tax evaders to desist from the act.

“Not only are their actions morally wrong as they ride on the sweat of others, their actions amount to serious criminal offences for which they can face severe penalties if convicted.”

On the town hall meeting, the minister said it was a veritable information sharing and feedback mechanism.

He said it was an avenue to synergise with stakeholders and residents on diverse issues of taxation in the FCT.

The minister said the recent issuance of the Information Circular No. 002 on demand, verification and comprehensive review of TCC in the FCT had elicited a lot of public interest.

Bello commended the chairman and management of the FCT -IRS, saying the townhall meeting would enable residents and other stakeholders grasp the import of the tax policy.

He said the prompt and accurate payment of tax would go a long way in making FCT one of the best cities in the world.

According to him, there is the need to improve the FCT’s revenue base to provide the territory with world class infrastructure.

“The FCT administration has the mandate to build for our nation a capital territory that is comparable to the best in the world.

“For over four decades, we have delivered on this mandate as Abuja has turned out to be a very beautiful city as testified to on several ocassions by visitors to the city,” he said.

On revenue generation, the minister commended the FCT-IRS and residents for ensuring that the FCT became second highest internally generating sub-national in the country.

“We have the potential of being number one with a little more effort and commitment from all of us.

“It is only with this show of commitment that we can truly
build the FCT of our collective dream,” he said.

The minister said the adminstration was working on making FCT a model for excellence in tax matters.

On multiple taxation, Bello said the administration was not unmindful of complaints on the issue and other tax matters.

He said measures were being taken to resolve the issue because of its negative impact on efforts to encourage investment in the FCT.

The permanent secretary, Olusade in his own remarks, said the FCT was spending about three billion Naira on water treatment and as much as Six billion Naira annually to keep the city clean.

He, however, said the money generated in respect of water and hygiene was nowhere close to what was expended on a yearly basis.

“Abuja public water supply is the cleanest in Nigeria and the chemical costs nothing less than Three billion Naira and we get less than that in terms of revenue.

“Also, we love the city when it is clean and we spend over Six billion Naira a year yet we earn barely Two billion Naira from revenue.

“So please pay your tax to sustain quality service and to make Abuja a safe home for all of us,” he said.

The Secretary, Economic Planning, Revenue Generation and Public Private Partnership (PPP), Mr Agboola Lukman Dabiri, said the population of the FCT was increasing by the day.

He said the development had put a strain on its infrastructure, particularly in the area of education, transportation, and housing among others.

Dabiri said maintaining the infrastructure to meet the increasing demand would require commitment from residents, particularly in the area of tax payment.

The secretary said the FCT was doing well in terms of solar system, rail infrastructure, environmental sanitation and other areas, adding that it recently won an awrd in agriculture.

He, however, said, “they all come with a price because budget is not money on the table but what is expected from revenue.”

Dabiri commended the FCT-IRS for its effort to increase the revenue base of the FCT.

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