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FCTA, Area Councils’ delegate revenues collection to FCT-IRS

The Federal Capital Territory Administration (FCTA) and the six Area Councils have jointly designated the FCT Internal Revenue Service (FCT-IRS) as the single revenue entity to collect all taxes and non-tax revenues collectible by both levels of government in the Territory in order to reduce revenue losses caused by inefficient revenue collection systems.

To this objective, the following data must be gathered and reported by the FCT-IRS: Market Taxes, Levies and Charges, howsoever Described; Business Premises, Shops and Kiosk Levy; Food and Water Related Handling Permit; Park & Pay/Street Parking; Wrong Parking Charges; Hotels, Restaurants and Event Centers Consumption Tax.

Additionally, places where the FCTA only has legal collecting obligations that were delegated to the FCT-IRS include: Environment fee or levy, Waste Management Charges, Sewage Connections, Environmental Impact/ Assessment Charges,
howsoever described; Outdoor Advertisements, Mobile Advert and Signages, howsoever
described; Telecommunication Mast and Communication Equipment, howsoever described and any other Revenue Heads to be so agreed from time to time by the FCTA.

However, Ground Rents, Tenement Rate and other Land Related Charges, howsoever described should be integrated into the Property Tax etc. Gaming and Betting, howsoever described; and any other Revenue Heads to be so agreed from time to time by the Joint Revenue Committee of the FCT.

This template was disclosed yesterday, at the press briefing on the resolutions reached at the Stakeholders’ Retreat on the harmonisation of revenue and ease of doing business in the FCT.

Permanent Secretary, FCTA, Mr. Olusade Adesola, who performed the official unveiling of the template at the event, said it was pursuant to the resolutions of the Retreat tagged: the “Akure Accord, which the immediate past FCT Minister, Mallam Muhammad Musa Bello, inaugurated the FCT Joint Revenue Committee chaired by the Chairman of the FCT IRS, Haruna Abdullahi.

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.

He said: “Accordingly, the FCTA and any of its Secretariat, Department and Agency (SDA) or other agents designated to identify, assess and account any revenue head for this resolution shall work collaboratively with the FCT-IRS towards the actualization of this objective including in the sharing of necessary data; and that the six FCT Area Councils shall where the respective Area Council alone has statutory collection responsibilities, review their affairs and could resolve on the extent of involvement of the FCT-IRS for their revenue collection.

“Officials of Government as applicable shall continue to perform their statutory responsibilities while harmonized revenues shall be collected on behalf of all by the FCT-IRS. Hence, the Area Councils shall progressively disarm all the “armed brigands” involved in revenue collection activities as soon as possible.

“Accordingly, each Area Council and any of their agents designated to Identify, Assess and Account for any revenue head for this resolution shall work collaboratively with the FCT-IRS towards the actualization of this objective including in the sharing of necessary data; that the Federal Capital Territory agree to delegate and hereby delegates duties and obligations for revenue heads where the FCTA only has statutory collection responsibilities to the FCT-IRS who shall serve as the single revenue entity to Collect and Report”.

He continues: “As we unveil the resolutions of the Akure Accord today, we reaffirm our
commitment to working together to create a more business-friendly environment that attracts investment, stimulate growth, and create job opportunities.

“This is a significant step in the FCT, and we look forward to seeing the positive impact of these resolutions on our economy and the well-being of our people. It is also imperative to solicit the cooperation of members of the tax paying public to cooperate with the Administration in its task of raising much needed revenue for the benefit of all and I call on the press to help spread this message of cooperation to the wider public.

“Let us move forward with a renewed hope and commitment to harmonize revenue collection and promote ease of doing business in the FCT, as we work towards building a thriving and sustainable economy that benefits all.”

Also speaking, FCT-IRS Executive Chairman, Haruna Abdullahi, who spoke through the Service’s Director, Tax operations, Malik Tukur, described the development as a pivotal moment in the history of the FCT, as it is in line with its vision for a more prosperous and business-friendly FCT.

“Together, we have drafted a communique that outlines the strategic direction and key actions needed to achieve our objectives. This document is a testament to the collaboration and dedication of all stakeholders involved. It symbolizes our commitment to working han d in hand to create a brighter future for businesses,
investors, and citizens alike.

“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. We must be willing to embrace new ideas, engage in constructive dialogue, and make the necessary sacrifices to achieve the greater good”.

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