Multiple taxation: FCT hits milestone in revenue harmonisation drive

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By Sarah NEGEDU 

Leadership of the six Area Councils and that of the FCT Administration have agreed to accelerate the process of harmonisation and consolidation of revenue collection in the Federal Capital Territory within the shortest possible time.

The FCT Minister, Mallam Muhammad Bello, said it had become necessary to modernise the tax system in Territory, as it will enhance the overall economic development of the the FCT people and residents.

Speaking yesterday at the inauguration of a 13-Man FCT Joint Revenue Committee, JRC, the minister said there has to be very close collaboration with Area Councils chairmen, because the six area councils are the centre of unity, and there is no doubt that FCT is going to expand astronomically.

He added that through collaborative effort, the committee will devise strategies to enhance revenue generation through efficient collection process and improved compliance.

The committee under the chairmanship of Mr. Haruna Abdullahi, comes with a clear mandate and terms of reference that will guide its actions, and ensure it is successful attaining its objectives, as it’s been trusted with people with the critical responsibility to organise tax administration, address various revenue concerns and resolve disputes in the system.

It will also serve as a mechanism a dispute resolution as well as monitor and evaluate progress and ensure active stakeholders engagement. 

According to the minister, “What we have seen within the last three years is just the beginning. It is a reality that Nigeria is a large country, and Abuja represents a very important investment hub for people, and you can see the way and manner population is increasing daily.

“Over the years opportunities to raise the revenue profile had been missed, but I’m glad that over the last few years a lot of dialogue has taken place between the FCTA and Area Council Chairmen, using the FCT-IRS. And I think this collaboration is absolutely essential, and if it is done properly, the FCT will be better for it.

“I want to advise the chairmen of the Area Councils that it is better that you get 10percent of a very large prosperous affluent cake than to have 100percent of something that is close to nothing.”

On his part, the FCT ALGON Chairman, Danladi Chiya, who is also the Chairman of Kwali Area Council, noted that the effort to streamline revenue collection process and modernise the tax system, shows that ease of doing business has come to stay in the FCT.  

He said: “As the Chairmen of the six Area Councils, we will put our heads to make sure that FCT-IRS succeeds by the grace of God”. 

Responding, the chairman of the committee, Haruna Abdullahi, who disclosed that the whole concept has been ongoing for a very long time, adding that the inauguration of the committee is a one step towards formalising what they are about to do in the FCT.

Abdullahi, who is also the Acting Executive Chairman, FCT Internal Revenue Service, FCT-IRS, explained that even though the FCT-IRS is supposed to drive the process, it will require the support of the area councils and other stakeholders.

According to him, the committee is provided for in the FCT-IRS Act, and there is a term of reference for it, and the whole idea is to harmonise and make sure that all revenues are collected seamlessly, in line with ease of doing business.

He said, “So we are quite excited that this two and half years harmonisation process has cumulated to the committee inauguration. This, will mean additional revenue to FCTA, which certainly will mean everything to us in terms of public utilities and services to the people.”

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