In a bid to bolster the revenue profile of the Federal Capital Territory (FCT), the Minister, Nyesom Wike, has issued directives for the stringent enforcement of the Personal Income Tax and the FCT Internal Revenue Service Acts of 2015. This move aims to ensure compliance with tax regulations and enhance revenue collection within the territory.
On October 4, 2023, in a memorandum, Wike had instructed all Ministries, Departments, and Agencies (MDAs), commercial banks, as well as FCT Secretariats, Departments, and Agencies (SDAs) to strictly adhere to the provisions of the laws, particularly Section 85 of the Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act 2015.
During a news conference on Monday, the Mandate Secretary of the FCT Economic Planning, Revenue Generation, and Public Private Partnerships Secretariat, Chinedum Elechi, revealed that Minister Wike had granted approval for the implementation of Section 85 of the Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act, 2015.
In light of this directive, it was made clear that individuals who furnish false information or obtain a Tax Clearance Certificate (TCC) through forgery or falsification would be subject to a fine of N50,000 or a three-year jail term, or both, upon conviction.
Furthermore, government entities or organizations that fail to verify a TCC before engaging in any transaction could face a fine of N5,000,000 or a three-year jail term, or both, upon conviction.
According to Mr. Elechi, “Section 31 of the FCT-IRS Act stipulates that all SDAs, corporate bodies, or any individual authorized by law must request a TCC from individuals or enterprises for the three years preceding the current assessment year as a prerequisite for conducting any business in the FCT.”
These transactions encompass a wide range of activities, including the issuance of Certificates of Occupancy, contract awards, building plan approvals, FCTA housing loan applications, business-related transactions, motor vehicle registrations, land applications, and various others.
The enforcement of these tax laws is expected to strengthen revenue collection and enhance fiscal discipline within the Federal Capital Territory.