IGR: FCTA inaugurated tax implementation committee

IGR: FCTA inaugurated tax implementation committee
November 08 12:59 2023 Print This Article

The Federal Capital Territory Administration (FCTA) has inaugurated a Capital Gain Tax (CGT) Implementation Committee to boost Internally Generated Revenue (IGR) in the territory.

Mr Chinedum Kelechi, the Mandate Secretary, Economic Planning, Revenue Generation and Public Private Partnership, FCTA, inaugurated the committee in Abuja on Tuesday.

The committee would be chaired by the Executive Chairman, FCT-IRS, while the Director, Tax Operations, FCT-IRS would serve as secretary.

Other members of the committee include the Solicitor General; Director, Land Department; Director, Development Control; Director, Abuja Geographic Information System; and the Chairman of Nigerian Bar Association (NBA).

Kelechi explained that the committee became necessary following FCT Minister Nyesom Wike’s approval for the implementation of the CGT Act, Cap. CI LFN 2004.

“The Act imposes a CGT tax rate of 10 per cent on the total amount of chargeable gains accruable to any person upon disposal of his or her chargeable asset.

“Or assets in a year of assessment after deduction of the allowable expenses from the gains made on the asset’s disposal.

“This is to be remitted to the FCT Internal Revenue Service (FCT-IRS) as required by the extant law,” he said.

He added that Wike had equally approved inter-agency collaboration and synergy between the FCT-IRS and other relevant agencies to ensure smooth implementation of the CGT Act.

The mandate secretary said that the committee would conduct comprehensive awareness and education campaigns to improve citizens’ understanding.

He also said that the committee would conduct regular stakeholders’ engagement through business associations, chambers of commerce, NBA and other relevant organisations.

He added that the committee would monitor transactions across stakeholders, agencies as well as enforce the CGT implementation in accordance with extant laws.

Kelechi urged members of the committee to collaborate with the judiciary to handle cases of severe non-compliance or fraud as well as establishing a transparent dispute resolution mechanism among others.

Earlier, the acting Executive Chairman, FCT-IRS, Mr Haruna Abdullahi, said that the CGT was part of taxes that FCT-IRS was empowered by law to collect.

Abdullahi decried the situation where the collection of the CGT due to FCT was less than five per cent.

He commended Wike for bringing relevant stakeholders together to work with FCT-IRS to enhance the revenue in the territory.

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