- PIT now compulsory for residents
BY EVELYN DADU – Minister of the Federal Capital Territory (FCT), Ezenwo Nyesom Wike, has warned that residents who evade taxes will no longer have any hiding place as the government moves to improve its revenue profile in Abuja, the nation’s capital.
Accordingly, he has approved that Section 85 of the Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act (IRAS) 2015 be implemented going forward for effective service delivery.
Both sections provide for the demand and verification of Tax Clearance Certificates (TCC) by Federal Government Ministries, Departments, Agencies (MDAs), Commercial Banks, and FCT Secretariats, Departments, and Agencies (SDAs).
Speaking through the Secretary of Economic Planning, Revenue Generation and Public-Private Partnership (EPRGPPP) Secretariat, Chinedum Elechi, at a media briefing at the FCDA Conference Room in Abuja on Monday, explained that; “Implementation of these laws is intended to ensure that all eligible taxpayers in the FCT comply with their tax obligations”.
He warned that anyone who provides false information or obtains a TCC through forgery or falsification is liable to a fine of N50,000 or a three-year jail term or both upon conviction in line with Section 85 of the PITA.
Similarly, any government entity or organization that fails to verify a TCC is liable to a fine of N5,000,000 or a three-year jail term or both, upon conviction.
The EPRGPPP Secretary also explained that Section 31 of the FCT-IRS Act provided that all SDAs, corporate bodies, or any person empowered by law, shall demand a TCC from any person or enterprises for the last three years “preceding the current year of assessment as a precondition for transacting any business in the FCT”.
Importantly, the said transactions documents include Certificate of Occupancy (C of C), award of contracts, approval of building plans, application for FCTA loan for housing, business, or any other purpose, and registration of motor vehicles, among others.
Urging residents to always pay their taxes promptly and obtain the TCCs, Elechi said; “Taxes are essential to the foundation of any government, and it is important that everyone pays their fair share. Payment of tax is a civic duty and responsibility.”
