REVEALED: Traditional Rulers kick against ‘punitive’ taxes, as FCTA woos investors

Traditional rulers in the nation’s capital, Abuja, have counselled the Federal Capital Territory Administration FCTA and relevant stakeholders against imposing exorbitant taxes on residents, saying tax administration in the territory must be done with a human face.

The Ona of Abaji and Chairman FCT Council of Chiefs, Alhaji Adamu Baba Yunusa who was represented by the Sarkin Gabas, Abaji, Alhaji Kamal Adamu Shuaibu gave the charge on Monday at a town hall meeting on Harmonization of Revenue in the FCT organized by the FCT Internal Revenue Service IRS.

“Tax and taxations are about human beings. The taxes in FCT are so unsettling. We want to see a situation whereby we impose and collect these taxes with human face. I want to ask you; by the time you leave your offices and become ordinary people like us, will you be able to pay such taxes? Can you pay? If your answer is ‘No’, then let us face the facts”, he stated.

A tax consultant, Bosun Ayeni had disclosed the multiplicity of taxes and revenues in the FCT, stating that there are 446 tax subheads in the Territory.

According the him, the six Area Councils are collectively in charge of collecting 155 revenues while the Secretariats, Departments and Agencies SDAs are responsible for 275. He said the FCT Internal Revenue Service collects only about 16.

“There are so many revenues sounding the same, yet collected by different agencies”, Ayeni had said.

https://youtu.be/cSIfvTscQYw

Some of the annual taxes that a typical small shop owner, like a Pharmacy, in the FCT is expected to pay are about 16 in number. They included Food and Water related handling permit; Gaseous Emission permit; Radio, television and communication mast permit, for generators; Pest and Vector control bill (Fumigation); POS machine permit; Development levies; CCTV Cameras permit, and Sign Post and Advertisement bill.

Others are Biohazard waste storage, handling and disposal permit; Building fitness and habitation certificate; Tenement Rates; Shops, Kiosks Business inspection permit; Liquor Permit; Toilet inspection Permit; Internet/Computer permit; and, Business registration permit.

Addressing the issues, Permanent Secretary in the FCT Administration, Mr Adesola Olusade said the new harmonized revenue collection system was designed to woo both local and foreign investors to the capital city.

He said, “by simplifying and consolidating our revenue collection systems, we aim to attract more investment, stimulate economic growth, and create employment opportunities”.

“This will enhance FCT’s reputation as an investment-friendly destination and contribute to the overall development of the region”.

Earlier, Chairman of FCT-IRS, Haruna Abdullahi explained that the harmonization system is duly backed by extant laws and regulations.

He said; “The Federal Capital Territory Internal Revenue Service Act entrusts us, the FCT-IRS, with a duty to collaborate with relevant stakeholders and agencies in harmonizing and improving our tax practices.

“This is aimed at optimizing our revenue generation efforts, while ensuring simplicity, transparency, and accountability in our tax systems.

“Our Harmonization Drive is not just about increasing our revenue. It is about building a system that works for all of us, a system that respects the contributions of every stakeholder, and a system that uses these contributions for the benefit of all.

“The Harmonization Drive is not merely an administrative reform; it represents a catalyst for socioeconomic development. By harmonizing and simplifying our revenue collection systems, we can unlock the full potential of our resources and pave the way for sustainable growth, improved service delivery, and enhanced quality of life for our citizens”.