By Sarah NEGEDU
The long standing disagreement around tax collection in the Federal Capital Territory Administration may have finally been resolved as stakeholders have agreed to harmonise revenue collection in the territory.
This is as the chairmen of the six Area Councils have enlisted the FCT Internal Revenue Service, FCT-IRS, as the only entity to collect all taxes and non-tax revenues collectible by both levels of government in the Territory.
The parties are optimistic that this would boost revenue for accelerated development across the six area councils and the Federal Capital City.
Speaking at a meeting with revenue stakeholders on Wednesday, the Permanent Secretary FCT Administration, Mr. Olusade Adesola, said the approach will not only put an end to the issues of multiple taxes, but also mitigate revenue losses due to inefficient revenue collection systems and illegal activities around tax collection.
Under the new arrangement, the FCT-IRS is to collect and report tax such as the Business Premises, Shops, and Kiosk Levy, the Environment Levy, and the Waste Management Levy.
Adesola, who performed the official unveiling of the template at the event, said it was pursuant to the resolutions reached at a stakeholders’ retreat on the harmonization of revenue and ease of doing business held in May.
A communique signed by the Permanent Secretary and all six Area Council chairmen, included a list of other taxes, charges, and levies, such as the “Food and Water related Handling Permit, Park & Pay/Street Parking, Wrong Parking Charges, howsoever described; Market Taxes, Levies and Charges howsoever described; Hotels, Restaurants and Event Centres Consumption Tax.”
Also, areas where the FCTA only has statutory collection responsibilities that were delegated to the FCT-IRS include: Environment fee or levy, Waste Management Charges, Sewage Connections, Environmental Impact/ Assessment Charges, Outdoor Advertisements, Mobile Advert and Signages, Telecommunication Mast and Communication Equipment, and any other Revenue Heads to be so agreed from time to time by the FCTA.
Adesola added that the overarching outcome of the “Akure Accord” is the phasing out of technical partners from direct collection of revenues by Area Councils.
“Accordingly, the FCTA and any of its Secretariat, Department and Agency or other agents designated to identify, assess and account any revenue head for this resolution shall work collaboratively with the FCT-IRS towards the actualization of this objective including in the sharing of necessary data; and that the six FCT Area Councils shall where the respective Area Council alone has statutory collection responsibilities, review their affairs and could resolve on the extent of involvement of the FCT-IRS for their revenue collection.
“Officials of government as applicable shall continue to perform their statutory responsibilities while harmonized revenues shall be collected on behalf of all by the FCT-IRS. Hence, the Area Councils shall progressively disarm all the “armed brigands” involved in revenue collection activities as soon as possible.”
Also speaking, FCT-IRS Executive Chairman, Haruna Abdullahi, who spoke through the Service’s Director, Tax operations, Malik Tukur, described the development as a pivotal moment in the history of the FCT, as it is in line with its vision for a more prosperous and business-friendly FCT.
“As we embark on this transformative journey, we must be guided by a spirit of unity and shared responsibility. It is our collective effort that will bring about the positive change we all desire. We must be willing to embrace new ideas, engage in constructive dialogue, and make the necessary sacrifices to achieve the greater good”.