From Juliana Taiwo-Obalonye, Abuja
For 2024, the Federal Capital Territory Internal Revenue Service (FCT-IRS) has reported an impressive revenue collection of ₦252.8 billion, a 19.8% increase over the ₦211.1 billion collected the year before.
This was announced during the FCT-IRS’s annual end-of-year briefing in Abuja, by acting chairman Michael Ango.
To simplify tax collection procedures, Ango disclosed that the FCT-IRS will begin tax harmonisation in 2025. All six area councils will work together on this project to consolidate tax collection activities.
Ango promised local authorities that although the FCT-IRS will handle tax collection on their behalf, the councils will still be credited with the money raised.
“We have reached an agreement with all area councils to collect all taxes on their behalf and subsequently disburse the funds accordingly,” Ango stated. He stressed that this approach aligns with global best practices and aims to enhance efficiency in revenue collection.
Ango also addressed ongoing infrastructural developments spearheaded by the Minister of FCT, Nyesom Wike. He noted that these projects, which include administrative remodelling and the implementation of a minimum wage, necessitate increased revenue generation. “All these require revenue,” he remarked.
The acting chairman reassured area councils concerned about potential revenue losses, stating, “This revenue will remain theirs. All we are doing is assisting them in collecting and aggregating it. The funds will then be disbursed to them in their respective accounts.”
In addition to tax harmonisation, Ango announced plans to introduce an Entertainment Tax applicable to various entertainment venues such as parks, restaurants, event centres, and relaxation grounds. He clarified that this initiative is not about imposing new laws but rather enforcing existing regulations.
“We are not trying to overburden FCT residents,” he explained. “If those taxes already exist in our books, it is our duty and obligation under the law to ensure that we implement those taxes and collect those revenues. Any revenue collected is ultimately used for the benefit of all residents.”
To facilitate easier payment processes for taxpayers, Ango indicated that starting January 2025, the FCT-IRS would decentralise payment points across the territory. This initiative will include the use of Point of Sale (POS) systems to accommodate low-income earners and residents outside the city centre.
Furthermore, plans are underway to establish kiosk offices in various locations throughout the FCT, including markets and plazas, to provide greater accessibility for taxpayers.