Nyesom Wike, Minister of the Federal Capital Territory FCT, on Monday, ordered the enactment of the 2015 Personal Income Tax and FCT Internal income Service Acts as part of measures to increase the territory’s income profile.
The minister in an October 4, 2023, memo had directed all ministries, departments and agencies, MDAs, commercial banks, as well as FCT secretariats, departments and agencies, SDAs, to ensure strict compliance with the laws, particularly Section 85 of the Personal Income Tax Act, PITA, and Section 31 of the FCT Internal Revenue Service Act 2015.
“The Federal Capital Territory Administration, FCTA, has observed with dismay, lack of implementation and adherence to the provisions of section 85 of Personal Income Tax Act (PITA), 2011 (as Amended) and Section 31 of the Federal Capital Territory Internal Revenue Service Act, 2015 that provide for the demand and verification of Tax Clearance Certificates TCC from residents of the FCT before rendering of services or performance of transactions,” the memo had read in part.
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Confirming this mandate at a briefing in Abuja on Monday, FCT Economic Planning, Revenue Generation, and Public Private Partnerships Secretariat Mandate Secretary Chinedum Elechi stated that the minister had approved the implementation of Section 85 of the Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act of 2015 in order to achieve this goal.
Elechi also claimed that anyone found guilty of giving false information or obtaining a TCC by fraud or forgery will face a punishment of N50,000, three years in prison, or both.
Any government entity or organisation, he continued, was subject to a fine of N5,000,000 or a three-year prison sentence, or both, upon conviction for failing to authenticate a TCC prior to any transaction.
He said: “Section 31 of the FCT-IRS Act provides that all SDAs, corporate bodies, or any person empowered by law, shall demand a TCC from any person or enterprise for the last three years preceding the current year of assessment as a precondition for transacting any business in the FCT.”
The said transactions include certificate of occupancy, award of contracts, approval of building plans, application for FCTA loan for housing, business or any other purpose, registration of motor vehicles, land applications and a host of others.
Elechi further noted: “Taxes are essential to the foundation of any government, and it is important that everyone pays their fair share. Payment of tax is a civic duty and responsibility. Implementation of these laws is intended to ensure that all eligible taxpayers in the FCT comply with their tax obligations.”