Individuals, organisations and government agencies would have to present their tax clearance certificates before transacting business in the Federal Capital Territory, as the FCT Administration says it will not tolerate acts that impedes on its revenue drive.
The FCT Minister, Mallam Muhammad Bello, who sounded the note of warning at a Town Hall meeting organised by the FCT-Inland Revenue Service, threatened sanctions against those violating its order that tax clearance certificates be presented before every business transactions within the territory.
Bello, who was represented at the event by the FCT Permanent Secretary, Olusade Adesola, also advised those in the habit of evading tax to desist from it, as he said that the FCTA will soon commence the immediate arrest and prosecution of defaulters.
Lamenting the huge expenditure the FCTA incurs in provision of infrastructure and essential services, the minister said residents have a lot to gain if taxes are paid regularly.
“I therefore, use this opportunity to send a note of strong warning to tax evaders to desist from their actions. Not only are their actions morally wrong as they ride on the sweat of others but their actions are also serious criminal offences for which they can face very severe penalties on they conviction.” Bello said.
He noted that the FCTA “has the mandate to build for our nation a capital Territory that is comparable to the best in the world. And for over four decades, we have delivered on this mandate as Abuja has indeed turned out to be a very beautiful city indeed as testified to severally by visitors to the city.”
“It must however be admitted that if we are to continue too provide world class infrastructure for the city, we need a greatly improved revenue base which can only be attained by a robust tax policy where all who call FCT home also contribute through faxes to her development” the Minister added.
The minister also pledged to address issues of multiple taxation in the territory.
“We are not unmindful of complaints about multiple taxation and other sundry challenges in our tax regime. This matter is also of grave concern to us and we are taking measures to resolve the issue because it also impacts negatively on our efforts of encouraging investment in the territory.”
Earlier in his remarks, the Executive Chairman of the FCT Inland Revenue Service, Haruna Abdullahi, made it clear that the existing law provides that “failure to demand and verify a Tax Clearance Certificate presented by an individual is liable to sanctions and possible conviction with a fine of N5,000,000.00 (Five Million Naira) or three years imprisonment or both the fine and imprisonment”
” I would urge all residents and relevant stakeholders to choose voluntary compliance over compulsion. I would like to reiterate that it is imperative that a Tax Clearance Certificate, TCC, is demanded as a pre-condition for various transactions in the FCT and it is instructive to note that the law requires such from Government Ministries, Departments, Agencies and Commercial Banks.” He stressed.