The Acting Chairman of the Federal Capital Territory (FCT) Internal Revenue Service (FCT-IRS) Haruna Abdullahi,says only 10 percent of its registered tax payers in the nation’s capital are paying their taxes.
Abdullahi, disclosed this at a day tax seminar on reviving the culture of filing tax returns in the nation’s capital.
He explained that in response to this challenge and to cushion the effect, the Service had introduced the Key Account Managers (KAM,) who follow up with taxpayers via one on one basis.
He added : “From our records, the number of taxpayers under the PAYE scheme is about 120,000 with half of 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.
“This implies that 90 percent of the FCT residents registered for tax do not file their tax returns; meaning that 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”, he stated.
He said when the Service took over tax administration in the FCT from the FIRS in 2015, the highest amount collected was about N48b, adding that in 2021, the Service collected over N100b with an additional N26billion in recoveries of unremitted With-holding Taxes (WHT).
‘”This year we intend to increase our collection to N150billion and are in good stead to recover some unremitted taxes and levies taking us to a targeted collection figure of N200billion’” said.
He noted that with enhanced compliance by the remaining residents, the service can provide a steady annual tax income of N300billion to N400billion,making room for high employment, curb low income and provide enhanced services to the residents.
He emphasized the need to revive the culture of filing tax returns cannot be overemphasized as this is critical to providing financing for the government to deliver public services that are vital to sustainable development in the FCT.
“A recollection of our starting point and where we are currently will help steer the conversation in the desired direction,’’ he said.
