The Minister of the Federal Capital Territory, Nyesom Wike, has given the green light to a proposed property tax regulation for Abuja, signifying a new phase where property owners will commence tax payments on their assets.
Revelations from the Executive Chairman of FCT-IRS, Haruna Abdullahi, during a press briefing in Abuja, indicated that the Capital Gains Tax (CGT) Act of 2004 was now in effect in Abuja, by its provisions.
Abdullahi highlighted the FCT-IRS’s successful efforts in increasing internally generated revenue (IGR) to approximately N140 billion.
He emphasized that the CGT imposes a 10 percent tax on chargeable gains from the disposal of assets after allowable deductions.
Regarding revenue-boosting measures, Abdullahi shared, “The minister has approved significant initiatives that will reshape our financial landscape. We recently submitted a draft proposal for FCT property tax regulation, and the minister endorsed it. This sets the stage for inter-agency collaboration to review and finalize the draft, marking a positive impact on the city’s IGR.”
He further revealed Wike’s approval for the full implementation of the Capital Gains Tax in Abuja, anticipating a substantial increase in revenue targets, adding that a committee was inaugurated to enforce the Capital Gains Tax law.
Abdullahi shed light on recent developments, stating, “About a month ago, the minister sanctioned the implementation of Section 85 of the Personal Income Tax Act and Section 31 of the FCT IRS Act, reinforcing our commitment to fiscal responsibility.”
Reflecting on his two-year tenure, Abdullahi emphasized the necessity of political support for effective tax administration.
He expressed gratitude for Wike’s endorsement of Section 85, making it mandatory for individuals to possess a tax clearance certificate for various permits, including building permits.
Responding to challenges in tax collection, Abdullahi addressed political and operational issues, emphasizing the critical role of political will.
He noted, “The minister’s unwavering support has alleviated challenges, and stakeholders now recognize the administration’s commitment to revenue matters.”
