By Joyce Remi-Babayeju
The Minister of the Federal Capital Territory (FCT), Barr. Ezenwo Nyesom Wike, has authorized the strict implementation of the Personal Income Tax and the FCT Internal Revenue Service Acts 2015, with the aim of enhancing the revenue base of the territory.
Hon. Chinedum Elechi, the Mandate Secretary of the Economic Planning, Revenue Generation, and Public Private Secretariat, announced at a press conference in Abuja on Monday that Wike “has approved the implementation of Section 85 of the Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act, 2015.”
Elechi cautioned that, as per Section 85 of the PITA, anyone who provided false information or obtained a Tax Clearance Certificate (TCC) through forgery or falsification could face a fine of N50,000 (Fifty Thousand Naira) or a three-year jail term, or both, upon conviction. He also mentioned that a government entity or organization that fails to verify a TCC could be liable for a fine of N5,000,000 or a three-year jail term, or both, upon conviction.
Consequently, Ministries, Departments, and Agencies (MDAs), commercial banks, FCT Secretariats, Departments, and Agencies (SDAs) have been instructed 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 require Federal Government Ministries, Departments, and Agencies, commercial banks, and FCT Secretariats, Departments, and Agencies to demand and verify Tax Clearance Certificates (TCC) before allowing any transactions to take place.
Discussing the consequences of non-compliance, Elechi stated that penalties, ranging from a fine of N1,000,000.00 to a three-year jail term, are provided in the Acts for defaulters as the new revenue generation exercise begins.
He warned that individuals providing false information or obtaining a TCC through forgery or falsification, as per Section 85 of the PITA, would be liable to a fine of N50,000 (Fifty Thousand Naira) or a three-year jail term, or both, upon conviction. A government entity or organization that fails to verify a TCC is liable for 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 requires SDAs, corporate bodies, or any person empowered by law to demand a TCC from any person or enterprise for the last three years “preceding the current year of assessment” as a prerequisite for conducting any business in the FCT. Such transactions include obtaining a Certificate of Occupancy, awarding contracts, approving building plans, applying for FCTA loans for housing or business purposes, registering motor vehicles, among others.
Elechi appealed to residents to pay their taxes and obtain their TCCs, emphasizing 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.” He stated that the implementation of these laws aims to ensure that all eligible taxpayers in the FCT comply with their tax obligations.
It is worth noting that Wike, during a meeting with revenue-generating agencies a month ago, expressed his goal of raising the Internally Generated Revenue (IGR) of the FCT above N250 billion per month. He mobilized all revenue-generating agencies in the FCT for significant improvements in revenue generation.
Furthermore, during a meeting with revenue-generating agencies, Mr. Elechi indicated that FCTA potentially has the capacity to achieve N250 billion per month. He also stressed the importance of ensuring that taxation has a human face, especially when addressing issues of multiple taxation.
Mr. Elechi highlighted the civic duty of citizens to pay their taxes as scheduled, emphasizing that this meeting aimed to find ways to improve IGR in the FCT, aligning with the aspiration of making Abuja one of the world’s developed capital cities.
