FCT-IRS set to clamp down on tax defaulters

The Federal Capital Territory Internal Revenue Service (FCT-IRS) has concluded plans to establish a strict enforcement regime to crack down on tax evaders, particularly those who operate in the FCT, in order to discourage the practice.

The Chairman of the Service, Haruna Abdullahi made this disclosure following the discovery that about 90% of Abuja Residents do not file their tax Returns.

He stated that it would no longer be business as usual, as the service was determined to ensure that all taxpayers in the FCT were responsive to their civic duties.

Tax payment is critical to improving the quality of lives of citizens and funding essential infrastructure and the provision of social services by government.

At a seminar experts spoke on the importance of Reviving the Culture of Filing Returns as this is a basic requirement to providing finance for government to deliver public services which is Vital to Sustainable development.

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Chairman of the FCT Internal Revenue Service and other experts present lamented the low compliance of tax returns among FCT residents which they say has limited the government’s efforts to improve living conditions in the FCT .

The Service, disclosed that the average number of tax payers outside those remitting through the PAYE Scheme has remained at 4000 since inception with a significant percentage of stop filers.

The Service hopes to increase its net to around $200 billion by 2022, including recovered unremitted taxes and levies.

This collection is expected from 20% of the registered tax payers in the territory.

The service believes that if all residents file tax returns, it can easily provide a consistent annual tax income of up to 400 billion Naira.

The FCT revenue agency hopes that the seminar will assist in identifying the tools that are available to ensure full compliance in meeting the requirements needed to grow the economy by improving internally generated revenue and remittances.