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Tag: IGR

  • FCTA Moves To Harness, Boost IGR, Wike approves Capital Gain Tax Implementation Committee

    FCTA Moves To Harness, Boost IGR, Wike approves Capital Gain Tax Implementation Committee

    By Joyce Remi-Babayeju

    In a bid to harness and boost the Internally Generated Revenue (IGR), the Federal Capital Territory Administration (FCTA) has inaugurated the Capital Gain Tax Implementation Committee for the FCT.

    The Mandate Secretary, Economic Planning, Revenue Generation and Public Private Partnership, Barr. Chinedum Kelechi while inaugurating the Committee on Tuesday, said that, the Hon. Minister of the FCT, Barr. Nyesom Wike has approved the implementation of the Capital Gains Tax (CGT) Act, Cap.CI LFN 2004 (as ).

    Kelechi explained that the Act imposes a CGT tax rate of 10% on the total amount of chargeable gains accruable to any person upon disposal of his/her chargeable asset or assets in a year of assessment after deduction of the allowable expenses from the gains made on the assets disposal and to be remitted to the FCT Internal Revenue Service as required by the extant law.

    Furthermore, he noted that to fully harness the potential of CGT in FCT, the Minister has also approved inter-agency collaboration and synergy between the FCT-IRS and other relevant agencies that would work for smooth implementation of this CGT Act.

    Stating the terms of reference, the Mandate Secretary charged the committee to conduct comprehensive awareness and education campaigns to improve citizens understanding and also regular stakeholders’ engagement through business associations, chambers of commerce, Nigeria Bar Association and other relevant organizations.

    He urged the committee to conduct monitoring of transactions across the stakeholder agencies and enforce the implementation of CGT in accordance with extant laws, also enjoin members to collaborate with the judiciary to handle cases of severe non-compliance or fraud as well as establishing transparent dispute resolution mechanism among others.

    According to him, the committee which would be headed by the Executive Chairman FCT-IRS as chairman, Solicitor General, Director, Land Department, Director, Development Control, Director, Abuja Geographic Information System and the Chairman of Nigerian Bar Association as members while the Director, Tax Operations in FCT-IRS would serve as secretary.

    In his remarks, the Acting Executive Chairman, FCT-IRS, Mr. Haruna Abdullahi said CGT is part of the tax types the Service is empowered by law to collect but however lamented that only less than 5% of what is due from capital gain tax is being generated.

    Abdullahi expressed joy on the commitment of the FCT minister to bring together relevant stakeholders to work with the Service to enhance the revenue in the territory.

  • IGR: FCT Minister warns tax defaulters against evading payment

    IGR: FCT Minister warns tax defaulters against evading payment

    By Joyce Remi-Babayeju

    The FCT Minister, Malam Muhammad Musa Bello, has warned tax defaulters who evade payment to desist from such act as it hinders efforts towards improving the Internally Generated Revenue, IGR, source of the Territory.

    Bello noted that their actions are not only morally wrong but also a serious criminal offence which attracts severe penalties.

    The minister gave this warning today in Abuja at a Town hall meeting organized by the Intern Revenue Service (FCT- IRS) , to enlighten FCT residents on the need for issuance of Tax Clearance Certificate for tax payers in the Territory.

    He stressed that for the Administration to continue to provide world class infrastructure in the city, there is need to improve the revenue base, adding that this can only be achieved by a robust policy where all FCT residents pay their taxes for the overall development of the city

    “As residents and business owners, you have a sacred responsibility of paying your tax to help the Administration in ensuring the FCT that we desire.”

    I therefore, use this opportunity to send a note of strong warning to tax evaders to desist from their actions”, he stressed.

    According to the minister, the efforts of the FCT- IRS, with the cooperation of residents has earned FCT the position of the second highest internally generating city in the country.

    He noted that the Administration is however mindful of complaints of multiple taxation and other taxation related challenges.

    “This matter is also of grave concern to us and we are taking measures to resolve the issue because it also impacts
    negatively on our efforts of encouraging investment in the
    Territory.”

    The minister also commended the Acting Executive Chairman and
    management of the FCT -IRS for the initiative of holding the Town Hall meeting to educate residents and other stakeholders on the import of the Tax policy which is designed to benefit all.

    Acting Executive Chairman FCT-IRS, Haruna Y. Abdullahi, said while working towards ensuring provision of Taxpayer-centric services, it will not hesitate to take punitive
    measures against defaulters.

    Abdullahi however urged FCT
    residents and other stakeholders to choose voluntary compliance over compulsion, which maybe the last resort .

    He noted that the growth and development of the FCT can easily be achieved when residents of the FCT pay their taxes as and when due.

    Abdullahi emphazied the need to demand for Tax Verification by individuals and Financial institutions.

    Meanwhile, he warned that the failure to demand and verify a Tax Clearance Certificate presented by an individual is liable to sanctions and possible conviction with a fine of N5,000,000.00 (Five Million Naira) or three
    years imprisonment or both the fine and imprisonment according to the relevant tax laws.

    “As the relevant tax authority for Personal Income Tax administrations, we have a vital role to play in ensuring strict adherence to the contents of this publication.”

    The FCT-IRS has trained its staff on effective monitoring and enforcement procedures as well as investigation for violations of any aspect of the tax laws, Abdullahi said.

    Daybreak reports that present at the Town Hall meeting were Chairmen of FCT Area Councils, representatives from CBN, FMSDAs, FCT-SDAs, Corporate and financial institutions.

  • FCT Mining department creation to boost IGR for Territory – Perm. Sec

    FCT Mining department creation to boost IGR for Territory – Perm. Sec

    By Joyce Remi-Babayeju

    The Permanent Secretary of the Federal Capital Territory Administration (FCTA), Olusade Adesola, has explained the FCT Mining Department and Allied Matters was established to ensure all activities in the sector is properly coordinated for improved Internally Generated Revenue, IGR, and to boost the socio-economic activities in the territory.

    Adesola who explained this while receiving a delegation from the National Steel Council of Nigeria, led by the Executive Secretary, Amb. Abdulkadir Musafari, said there are a lot of illegal mining activities that are going on in the FCT.

    He emphazied that although the FCT has a lot of ongoing infrastural projects to cater for the wellbeing of residents, but inadequate funding has neccesitated the reason to widen the scope to other sectors such as Mining to compliment the allocation from the Federal Government.

    Adesola charged the leadership of the newly created Department of Solid Minerals and Allied Matters, to come up with policies that would end illegal mining and enhance the development of the sector.

    The Permanent Secretary commended the FCT Minister, Mallam Muhammad Musa Bello, for approving the creation of the department.

    Executive Secretary of the National Steel Council, Amb. Abdulkadir Musafari said they were in the FCT to solicit partnership and support of the administration to strengthen its operation.

    Musafari said that the responsibility of the Council is to regulate the Steel sub-sector of the Nigerian Economy to ensure that it conforms with the Acts that established it in 1979.

    He stated that Abuja is a developing city, and there are a lot of constructions that are going on in the Territory, which falls under the responsibility of the Council to ensure that Steels that are used by the construction companies are strong enough to support buildings and other structures.

    According to Musafari, Ajaokuta which was created at the same time as the FCT is expected to serve as an economic zone for the country but regretted that not much has been achieved in the development of the Steel sector.

  • IGR: Lagos Leads As FCT Beats Rivers, Kano, 33 Others

    IGR: Lagos Leads As FCT Beats Rivers, Kano, 33 Others

    The 36 states and the Federal Capital Territory generated N849.123bn as Internally Generated Revenue (IGR) in 2021 compared to N612.87bn in 2020.

    A report by the National Bureau of Statistics (NBS) yesterday disclosed that N398 billion was generated in the first quarter of 2021 and N450bn in the second quarter, making a positive growth of 13.21 percent.

    The report categorized the IGRs into five subheads of: PAYE, Direct Assessment, Road Taxes, Other Taxes and revenue from Ministries, Departments and Agencies (MDAs).

    It stated that Lagos State had the highest IGR with N267bn followed by the FCT with N69bn and Rivers, N57bn.

    Yobe State had the least amount with N4bn; Taraba, N4.7bn; Gombe, N5.4bn.

    The IGR of other states within the period under review were Abia, N7.5bn; Adamawa, N6bn; Akwa Ibom, N18bn; Anambra, N12.7bn; Bauchi, N9.4bn; Bayelsa, N6.4bn; Benue, N6.7bn; Borno, N9.8bn; Cross River, N14.7; Delta, N41.9bn; Ebonyi, N7.7bn; Edo, N17.6bn; Ekiti, N6.5Bbn; Enugu, N14.1bn; Imo, N9.9bn; Jigawa, N9.3bn; Kaduna, N26.4bn and Kano, N15bn.

    Others were Katsina, N7.4bn; Kebbi, N7.3bn; Kogi, N9.6bn; Kwara, N15.9bn; Nasarawa, N9.5bn; Niger, N7.9bn; Ogun, N54bn; Ondo, N17.9bn; Osun, N13.6bn; Oyo, N25.9bn; Plateau, N14.4bn; Sokoto, N8.4bn and Zamfara, N8.4bn.

    The report stated that the IGR by the six geo-political zones in the first half of 2021 showed that South West recorded the highest revenue of N385,414,274,922.27; South-South, N156,171,326,501.04; North-East zone recorded the least internally generated revenue with N42,915,002,928.39 billion.”

    It added that Pay-As-You-Earn (PAYE) contributed the highest amount to the states with N488bn, followed by revenue from MDAs, N173bn with Road Tax contributing the lowest with N16bn

  • Maritime Academy to commercialize facilities for increased IGR

    Maritime Academy to commercialize facilities for increased IGR

    The Maritime Academy of Nigeria (MAN), Oron in Akwa Ibom has concluded plans to commercialise its facilities inorder to increase Internally Generated Revenue, IGR. 

    Rector of the Academy, Commodore Duja Effedua (Rtd), who made this known while receiving a Certificate of Recognition from the Correspondents Chapel of the NUJ in the state yesterday in Oron said that it was necessary for the academy to look inwards inorder to maintain its standards.

    Effedua who said that before now the institution depended solely on government and fees generated from the cadets added that the outbreak of COVID-19 pandemic has really affected the academy as International businesses have slowed down.

    “In terms of Internally Generated Revenue (IGR), we can’t predict that anymore because COVID-19 has scattered everything, most of the ships are not there. So, our sources of revenue are very few. 

    “Few people are coming these days, when they come, they come for mandatory courses and we train them on that. That’s our major source of revenue, but COVID-19 has affected us.

    “But now we have a lot of equipment which we never had before like full-vision simulator, engine simulator, multifunctional class room and we have the helicopter that water escape through, among others. 

    “We intend to commercialise most of  those equipment which we used in training our cadets, we will open it to those who don’t have the money to buy those things. 

    “They can come and train here and then pay us some money, but at a subsidized rate also, because government should not be making money from capacity building,   rather they should encourage capacity building. So, we will open it to them, I have told them already that they are free to come here. Some of them have started coming.” The Rector explained.

    He said that there were areas the academy has comparative advantage over other maritime institutions making a case for exchange programmes and offered  to give 50% rebate to other institutions.

    “There are areas we have comparative advantage and there are areas they have over us. So, we’ve told them wherever we have advantage, we give them 50 per cent rate. 

    “So, those are the only ways we can generate more money, before we depended solely on attendance but now we hope to commercialise our equipment, even the hostels people can come and stay. 

    “There are some special hostels that are not used by cadets, we called them guest houses or halls of resident. When they go there they spent some token and spent a night, do their training and go back.” He said.

    Effedua said that he would consolidate on what the academy has achieved in the last four years, build on the structures and equipment to avoid it going down.

  • Adamawa Government Cuts Taxes By 50%, Introduces Online IGR Collection

    Two subjects of news about taxes | French Business Advice


    By Musa Isa Ahmed
    The Adamawa State government has slashed taxes on informal businesses by 50 per cent to help business owners operating in the state cushion the hardship occasioned by the coronavirus disease (COVID-19).
    Executive Chairman of Adamawa State Board of Internal Revenue, Alhaji Hamman Njabari, told journalists in Yola that Governor Ahmadu Umaru Fintiri’s directive for a slash on the taxes was part of the administration’s efforts to encourage the private sector to invest more in the state.
    The present administration’s political will support the board and make it an autonomous institution has raised the internally-generated revenue (IGR) by 49 per cent within a short period, he added.
    His words: “One of the crucial agenda of Governor Fintiri’s administration is to boost the IGR in the state.”Njabari said the introduction of online renewal of motor vehicle registration in the state – the first in the country – has made it possible for car-owners to renew their documents without the stress of visiting the board offices, and that such documents were delivered to the owner at home or office.
    “The board, in conjunction with a consultant, Kenako Nigeria Limited, has developed an online plate manager platform that tax-payers can access and renew their documents at any location and time the need arises,” he stated.According to him, cloud-based ticketing devices have been developed to check shoddy deals by tax collectors in the board.
    The devices, he added, are integrated with central payment gateway, which has face out issuing cash invoice.“Point of Sale (POS) terminals were also deployed to all Ministries, Departments and Agencies (MDAs) by the lead bank to mop all cash and electronic payments to the government coffers. Mobile collection technology in the board are configured to address collection in remote areas and mobile road collection,” he stated.

  • Covid-19: Gov. Zulum constitutes team to boost Borno IGR

    Covid-19: Gov. Zulum constitutes team to boost Borno IGR

    Gov. Babagana Zulum of Borno has constituted a 9-Member Committee to identify ways of increasing the state Internally Generated Revenue (IGR), as part of measures to contain global economic downturn caused by Coronavirus (Covid-19).

    The governor also announced that the state executive council would review 2020 budget following the fall in oil price.

    Inaugurating the committe on Tuesday in Maiduguri, Zulum said the committee is expected to recommend appropriate measures that would boost the state’s IGR.

    “The committee will look into the entire problem and recommend appropriate measures that would increase the IGR drive as well as to block leakages if any,” Zulum said.

    He also mandated the committee to coopt any member they felt could facilitate their assignment.

    He listed his economic Adviser, Alhaji Mustafa Bulu as Chairman of the committee, while the chairman of the state Board of Internal Revenue would serve as Secretary.

    Other members of the committee include Permanent Secretaries in Ministries of Finance, Trade and Investment, Environment, Transport, Health, Water Resources and the General Managers of the State’s Housing and Water Corporation. (NAN)