FCTA, Six Area Councils Delegate Tax Collection to FCT-IRS

Olawale Ajimotokan in Abuja

The Federal Capital Territory Administration (FCTA) and the six area councils have assigned the statutory duties and obligation of revenue collection to the FCT-IRS as part of the move to harmonise revenue and improve the ease of doing business in the FCT.

The recommendation was made by the FCT Joint Revenue Committee instituted by the former FCT Minister, Malam Muhammed Musa Bello, and chaired by the Chairman of FCT IRS, Haruna Abdulahi.

While briefing the press Wednesday on the resolutions reached at the stakeholders’ retreat held in Akure on the harmonization of revenue, the FCT Permanent Secretary, Adesola Olusade, said they also agreed on the phasing out of technical partners from direct collection of revenues by the area councils.

The elimination of the technical partners will curb double taxation and stamp out gangsters from the process of revenue or tax collection.

“Business premises are invaded oftentimes by ‘hoodlums’ allegedly canvassing for revenue collection. Residents are charged the same revenue by two or at times multiple authorities. These are indeed unsalutary,” Olusade said.

He said since 2021, the FCT Administration resumed active engagement with the six area councils, secretariats, departments and agencies involved in revenue collection and the FCT-IRS being the core stakeholders with the view to achieving a harmonized revenue collection outcome.

He said by this resolution, the FCT-IRS will now serve as the single revenue entity to collect tax on several revenue heads including shops and kiosk levy, water permit, park and pay, street parking, market taxes, hotel consumption, vehicular radio licence fee, mobile advert for vehicles, ground rents, gaming and betting.

The permanent secretary also added that the FCTA had agreed to delegate duties and obligations for revenues heads where it had statutory collection responsibilities to the FCT-IRS as the single revenue entity for collection of environmental fee, waste management charges, sewage connections, outdoor advertisement, mobile advert and signages and telecommunication masts.

The FCT IRS Chairman, Abdulahi, stressed the commitment of the service to work hand-in-hand with the stakeholders to create a brighter future for businesses, investors and stakeholders alike.

He said the collaboration will promote active engagement between government, the private sector and civil society organisations to ensure that all stakeholders’ voices are heard and considered in decision-making process.