The decision to consolidate revenue and centralize collection to the FCT-Internal Income Service (FCT-IRS) is in the best interests of the territory and its residents,the Federal Capital Territory Administration (FCTA) Permanent Secretary, Mr. Adesola Olusade has said
Olusade unveiled the tactical plan for assigning duties and responsibilities for revenue collection to the FCT-Internal Revenue Service (FCT-IRS) during a stakeholder meeting in Abuja.
He explained that this choice was made after much deliberation, careful research, and a persistent dedication to enhancing the effectiveness, efficiency, and transparency of the territory’s tax collection system.
It would be recalled that on Wednesday June 21, 2023 he led other stakeholders in a public presentation of the Communique of the Resolution Retreat on the Harmonization of Revenue Collection in the FCTA.
According to him, in a statement made available to newsmen on Tuesday in Abuja by the Head, Corporate Communications, FCT-IRS,
Mustapha Sumaila stated that the reactions of the Citizens to the presentation were salutary and revealed their great expectations, some of whom felt that the effort should have taken place “yesterday”. Indeed, we have attained a “point of no return” in this shared journey to promote sanity in the Territory.
The permanent secretary noted that to ensure the successful execution of this delegation, they decided to adopt a Project Management approach saying this approach, renowned for its structured, organized, and systematic process, would guide them through this transition, providing a clear roadmap for their journey.
Olusade disclosed that at the helm of this project, there would be the Project Steering Committee (PSC) previously known as the Implementation Committee to be chaired by the Permanent Secretary, FCTA.
According to him, the committee will comprise the Chairmen of the Area Councils, the Chairman, FCT-IRS, Secretary EPRGPP, the DOT and GC, LSS.
He added that the policy decisions of the PSC would be implemented by the project implementation committee to be chaired by the Chairman, FCT-IRS while details of membership of the committee would be constituted and conveyed by the Chairman.
“The PSC composed of key stakeholders, has been reconstituted to provide strategic direction, make critical decisions and ensure that the project stays on track and achieves its objectives.
“Accordingly, the Project Steering Committee will have several key functions like strategic direction, decision making, monitoring and oversight, risk management and communication” he stated.
In his remarks, the FCT-IRS Acting Executive Chairman, Mr. Haruna Abdullahi said the delegation of all revenue collection duties and responsibilities to a single entity, FCT-IRS which decision was borne out of the resolutions of the “Akure Accord” which marked a significant step towards creating a more business-friendly environment that would attract investment, stimulate growth, and create job opportunities.
Abdullahi said this decision was a strategic move that would guarantee numerous benefits as it represented a significant step towards a more efficient, transparent, and effective revenue collection system, and a more prosperous FCT.
He said centralizing revenue collection under the FCT-IRS would eliminate the need for multiple entities to perform similar tasks and would reduce administrative overhead and allow for a more streamlined process.
According to him, it also ensures that all revenue collection activities are coordinated and aligned, reducing the potential for errors or oversights that could lead to lost revenue and this efficiency can also result in cost savings, as resources can be more effectively allocated and used.
The FCT-IRS boss further stated that when a single entity is responsible for revenue collection, it would be easier to maintain oversight and ensure accountability as all transactions would be recorded and processed in one place, making it simpler to track and audit.
He added that transparency could help to build trust with taxpayers, who would be confident that their payments are being handled correctly and responsibly.
“By simplifying the tax payment process, we can make it easier for businesses and individuals to comply with their tax obligations. This can reduce the time and resources they need to spend on tax-related activities, allowing them to focus more on their core operations. It can also make the FCT a more attractive place for businesses to operate, potentially attracting more investment and stimulating economic growth.
“Inefficient or fragmented revenue collection systems can lead to lost revenue, whether through errors, fraud, or non-compliance. By centralizing revenue collection with the FCT-IRS, we can address these issues more effectively, ensuring that all due revenue is collected. This can provide the FCT with more funds to invest in essential services and infrastructure, benefiting all residents.
“Having a single entity collect all revenues allows for better data collection and analysis. This can provide valuable insights into revenue trends, taxpayer behaviour, and potential areas of improvement in the tax system. It can also support more accurate revenue forecasting, helping the FCT to plan and budget more effectively” he said.
The FCT ALGON Chairman, Mr. Danladi Chiya pledged support and commitment to this harmonisation project saying that the six area council chairmen would work to ensure FCT-IRS succeeds in this its new mandate.
Chiya charged FCT-IRS and the Steering committee to swing into action and practicalise the process as quickly as possible.
The meeting was attended by heads and representatives of revenue generating agencies in the FCT.
