Tax Harmonization: FCTA Mandates FCT-IRS To Collect All Revenues

The Federal Capital Territory Administration, FCTA and the six Area Councils have resolved that the FCT Internal Revenue Service, FCT-IRS should collect all taxes and non-tax revenues on behalf of the six Area councils henceforth.

The Permanent Secretary FCTA, Mr Olusade Adesola who made this known at a media briefing in Abuja explained that the resolution was part of the outcome of the several retreats and stakeholders engagements held on how to address issues of multiple taxation .

He noted that this development of unifying tax collection at all levels in the territory would prevent residents from the agonies and pains that is oftentimes associated with the methods adopted by hoodlums that invades business premises.

” Business premises are invaded oftentimes by “hoodlums” allegedly canvassing for revenue collection. Residents are charged the same revenue by two or at times multiple authorities.” He noted.

Mr Olusade specifically thanked the six area councils chairmen and the FCT-IRS for their commitment and candour in the course of the intensive discussions and deliberations aimed at promoting ease of doing business for taxable residents, and increase revenue collection transparency.

According to the Permanent Secretary, In line with the harmonization mandate of FCT- IRS, they now have the responsibility to collect revenues in Business Premises, Shops and Kiosk levy, Food and Water related Handling Permit, Park & Pay/Street Parking, Wrong Parking Charges, Market Taxes, hotel Charges Restaurants and Event Centres Consumption Tax.

Others are, Environment fee or levy, Waste Management Charges, Sewage
Connections, Environmental Impact/ Assessment Charges,
Outdoor Advertisements, Mobile Advert and Signages, Telecommunication Mast and Communication Equipment, and any other Revenue Heads to be so agreed from time to time by the FCTA, while Ground Rents, Tenement Rate and other Land Related Charges is to be integrated into the Property Tax

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Mr Adesola added that the” overarching outcome of the “Akure Accord” is the phasing out of technical partners from direct collection of revenues by Area Councils”.

Responding to questions on likely crisis that may arise from the sharing formula between the Area Councils, the FCTA Permanent Secretary assured that the template for sharing formula of JAAC would be adopted.

On his part Executive Chairman FCT- IRS, Mr Haruna Abdullahi, represented by Director Tax Operations , Mr Malik Tukur, who noted that the move was in line with the service vision to ensure accountability, transparency, stimulate business opportunities,and create a more business friendly environment that will attract investment, tasked stakeholders to work with unity of purpose for a better FCT.

“As we embark on this transformative journey, we must be guided by a spirit of unity and shared responsibility. It is our collective effort that will bring about the positive change we all desire.” Tukur said.

The Algon Chairman, Danladi Chiya who spoke on behalf of other Chairmen, expressed the readiness of the area councils to work together in unity towards building Abuja to become a capital city that everyone will be proud of.

Remi Johnson, Edited By Shakirat Alabi