- FCT-IRS introduces Tax Clearance Certificate (TCC) requirement for FCT services, emphasizing compliance with tax regulations for revenue generation
- Plans to implement capital gains tax and launch a self-service portal, reflecting FCT-IRS’s commitment to innovative revenue strategies and self-sufficiency
In response to the surging population and infrastructural demands in the Federal Capital Territory (FCT), the FCT-IRS is taking groundbreaking steps to boost its internally generated revenue (IGR).
With the FCT evolving into one of the world’s fastest-growing cities due to an influx of people, addressing critical issues like deficient transportation and inadequate water supply becomes imperative.
The Federal Capital Territory-Inland Revenue Service (FCT-IRS) is actively engaging in innovative revenue generation strategies to tackle these challenges and transform the FCT into a world-class capital.
According to Mr Haruna Abdullah, the Executive Chairman of FCT-IRS, residents will now require a Tax Clearance Certificate (TCC) to access any FCT services. This recent development aligns with the implementation of tax regulations, emphasizing compliance with the Personal Income Tax Act and FCT-IRS Act.
Abdullah highlighted the FCT-IRS’s commitment to collaborating with relevant agencies to streamline the process. He explained that the FCT-IRS Act empowers the minister to introduce property tax regulations, a crucial step in diversifying revenue sources.
Furthermore, Abdullah revealed plans to implement the capital gains tax in Abuja fully. Capital gains, the increase in asset value upon sale, will now contribute significantly to the FCT’s revenue targets.
The FCT-IRS’s pursuit of revenue is not only expansive but also effective. With the 2015 FCT-IRS Act operational since January 2018, the service has significantly outperformed, surpassing 145 billion annually, compared to FIRS’s previous 40 billion collections.
Addressing concerns about basic infrastructure, Abdullah acknowledged valid citizen concerns. However, he emphasized the need for civic responsibility, stating that revenue generated could address critical issues such as security, social services, and health.
Abdullah confidently asserted that the FCT can entirely fund its budget from IGR, signalling a shift towards self-sustainability. To facilitate easier compliance, the FCT-IRS is set to launch a self-service portal, allowing residents to file returns, make payments, and receive TCCs seamlessly.
As the FCT-IRS spearheads these initiatives, it not only aims to enhance revenue but also strives to make the FCT a model of self-sufficiency, addressing the evolving needs of its residents.