By Daniel Tyokua
The Federal Capital Territory Administration (FCTA) has vowed to take stringent measures against individuals, organisations and agencies that default in paying their tax.
The Minister of the FCT Mohammad Bello stated this during a town hall meeting on the demand and verification of tax clearance certificate by MDAs, SDAs, commercial banks and corporate bodies in Abuja, yesterday.
He regretted that despite the large sum of money being spent by the administration in providing infrastructure and other services in the city, some persons fail to pay their tax, which he said residents have a lot to gain if taxes are paid as when due.
Bello, who was represented at the town hall meeting by the Permanent secretary, Olusola Adesola, disclosed that it will soon start arrest and prosecution of the tax evaders.
“I 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.
The minister explained 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.
He, however 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”
The Chairman FCT Inland Revenue Service (FCT – IRS), Haruna Abdullahi, in his remarks, said 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 briefly reiterate; 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 said.
