Our target is N400b annual tax income ― FCT-IRS

The Federal Territory Internal Revenue (FCT-IRS) has come out to say that it has the capacity to raise a steady annual tax income of N300b to N400b when there is improved tax filing compliance by Abuja residents.

The Service said with such an amount in its coffers, there will be more employment opportunities, low income will be reduced and the provision of services and infrastructure to the residents will be more efficient.

Acting Executive Chairman FCT-IRS, Haruna Y. Abdullahi, who made this assertion during a tax seminar on reviving the culture of filing tax returns, on Tuesday in Abuja, decried that 90% of the FCT residents registered for tax do not file their tax returns.

Abdullahi added that the Service has observed the worrying trend of engagement of unprofessional consultants by Taxpayers to prepare and file returns with seemingly very wealthy individuals being encouraged to file ridiculously low annual income of N1m to N2m.

He disclosed that so far, FCT-IRS raised the figure for Taxpayer Identification Numbers (TIN) issued from about 10,000 in 2017 to over 1,200,000 numbers of individuals registered in the Territory.

According to him, the average number of Taxpayers outside those remitting through the Pay As You Earn (PAYE) scheme has remained in the region of 4,000 with a significant percentage of stop filers.

He added that the number of Taxpayers under the PAYE scheme is about 120,000 with half the figure comprising staff of Federal Government Ministries,

Departments and Agencies (MDAs) on the IPPIS platform and those working for the FCTA and the Area Councils.

“Only 10% of the registered taxpayers file their tax returns. In response to this challenge and to cushion the effect, the Service has introduced the Key Account Managers (KAM) who follow up with taxpayers via one on one basis.

“This year, we intend to increase our collection to N150b and are in good stead to recover some unremitted taxes and levies taking us to a targeted collection figure of N200b.

“We must not miss the fact that this collection is only coming from the 20 per cent registered

Taxpayers in the territory and we believe that with enhanced compliance by the remaining residents, we can easily provide a steady annual tax income of N300b to N400b.

“The Service observed with concern the unethical conduct of some Tax Advisors who routinely encourage Tax Agents to doctor records or flatly refuse to make available documents that are needed to arrive at a fair assessment of taxes due.

“We are enthusiastic that this seminar will address the tools available to the Service to ensure full compliance in meeting the requirements needed to ascertain liabilities due and also enforce timely compliance with remittances of any established liability.

“We look to the FCTA to provide guidance and political support as the Service aims to achieve efficient revenue collection. I am confident that the outcome of this deliberation will set a new direction for revenue generation in the FCT”, he stressed.

ALSO READ FROM NIGERIAN TRIBUNE