FCT- IRS Strategizes To End Multiple Taxation, Urges Voluntary Compliance

The Federal Capital Territory – Internal Revenue Service, FCT- IRS, want taxpayers to prioritize tax compliance over compulsion to avoid sanctions.

The Executive Chairman, FCT-IRS, Mr Haruna Abdullahi, who made this known during its mid year briefing in Abuja, reiterated committment to harmonize taxes to address issues of touting and multiple taxation affecting businesses.

Mr Haruna represented by Acting Director Tax Operations, Chinwe Anohu Ndu explained that fulfilment of taxpayers’ tax obligations is a crucial aspect of development and a way of contributing their quota to nation building.

“By fulfilling your tax obligations, you contribute directly to the growth and prosperity of the FCT and the nation at large.”

Evaluating its performance, the tax boss revealed that the FCT-IRS among other strategies had built one of the most functional E-service portals in the revenue sector.

He noted that the Service had collected and remitted over ₦126 billion naira from January to June 2024, and used the medium to commend all committed taxpayers that are fulfilling their civic obligations to the development of the society”.

“We also owe this accomplishment to the high compliance rate of taxpayers in the FCT. We urge everyone to continue choosing voluntary compliance over compulsion.”

He lauded the FCT Minister for his exemplary leadership, support, and commitment to boosting revenue generation in the FCT, and pledged to sustain its strategies by leveraging on relevant technologies to consolidate on the strides attained so far.

To build on what the Agency had attained, Mr Haruna said the Service is resolute to carry out its mandate of maximizing tax collection to increase government revenue and ensuring efficient tax administration by streamlining tax processes, reducing bureaucracy, combating tax evasion and fraud as well as educating and enlightening tax payers.

“We are currently at the Growth State and to achieve this ambitious goal, we have designed strategies which include:The optimization of current revenue streams,
the operationalization of non-performing tax types, Conducting strategic tax audits for individuals and non-individuals.

“During economic challenges like those we are experiencing today, a tax authority like FCT-IRS is expected to play a crucial role in stabilizing the economy and generating revenue for the government to fund essential public services.

“The Service is also committed to aligning with Federal Government tax policy reforms aimed at stimulating economic growth”.

“We are currently optimizing and upgrading our technology to improve tax compliance, reduce costs, and enhance efficiency, to build a more resilient tax system that will enhance revenue generation while making tax paying process seamless for our taxpayers.

“The Service is also dedicated to engaging with taxpayers, businesses, and other stakeholders to understand their challenges in order to continuously develop solutions that will enhance tax compliance and eliminate tax evasion”, Haruna said.

The Executive Chairman of FCT- IRS gave the breakdown of the Agency’s 2024 achievement thus:”the FCT-IRS in the first half of the year- between January to June-has collected and remitted the sum of ₦126,535,768,441.30…our mid year collection for 2024 is 53.5% higher than our mid-year collection for 2023, higher by ₦44,076,516,599.5 in comparison to the ₦82,459,251,841.80 realized in the first half of 2023. Additionally, it is 119.7% higher than the mid-year collection of 2022, the collection in 2024 is ₦68,935,844,331.12 higher compared to the ₦57,599,924,110.2 collected in 2022.”

He, however, warned that the FCT IRS will not hesitate to legally sanction individuals and organizations that defaults.

“The FCT-IRS has commenced an enforcement drive to tackle tax evasion and ensure the collection and accounting of all revenue accruable to the FCT. Non-compliant businesses have been sealed, and appropriate legal actions taken to recover all tax liabilities”, Haruna noted.

On his part, the Head Technical Office of the Executive Chairman, Mr Umar Adamu Okpadobu said the issues of multiple taxation will end when the harmonization drive of the FCT- IRS gains momentum.

Mr Okpadobu who also used the medium to encourage Civil Servants to cultivate the habit of filing their tax returns, said anyone that applies for tax clearance certificate will get it within 14 days.

By Remi Johnson, Edited By Grace Namiji