The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has given his approval to a draft property tax regulation, signaling that property owners in Abuja will soon be required to pay taxes on their properties. The FCT-Internal Revenue Service has already begun implementing the Capital Gains Tax (CGT) in Abuja, in accordance with the Capital Gains Tax Act of 2004.
The CGT imposes a 10 percent tax on the total chargeable gains accrued from the disposal of chargeable assets in a given assessment year after applicable deductions have been made. This move is expected to increase the revenue targets of the FCT. Haruna Abdullahi, the Executive Chairman of FCT-IRS, revealed that the internally generated revenue of the capital city’s revenue service has reached approximately N140 billion.
Abdullahi disclosed these developments to journalists, stating that the minister has approved several key initiatives to drive revenue in the FCT. One such initiative is the draft proposal for the FCT property tax regulation, which has been approved by the minister. There will be an inter-agency collaboration to review the draft regulation before it is signed and gazetted for implementation.
Additionally, the minister has given the green light for the full implementation of the Capital Gains Tax in Abuja, leading to an expected increase in revenue. Abdullahi emphasized the significance of implementing tax laws such as Section 85 of the Personal Income Tax Act and Section 31 of the FCT-IRS Act. These measures will require individuals to obtain a tax clearance certificate to access certain services, such as obtaining building permits, thus ensuring tax compliance and enhancing revenue collection.
Abdullahi acknowledged that political support is crucial in resolving revenue issues, and he expressed gratitude for the minister’s support, which has helped overcome numerous challenges. He emphasized that implementing these initiatives, along with the property tax regulation, will have a substantial positive impact on the FCT’s revenue.
While facing challenges in revenue collection, the FCT-IRS is determined to address operational issues and improve communication clarity. Abdullahi believes that with the minister’s strong commitment to revenue generation, stakeholders in the city now recognize the political will driving these initiatives, leading to increased compliance.
The forthcoming implementation of property taxes and the full execution of the Capital Gains Tax, along with the enforcement of tax clearance certificates, is expected to significantly boost the FCT’s revenue collection and contribute to the ongoing development of the capital city.
