Federal Capital Territory Internal Revenue Service (FCT-IRS) has partnered with the Nigerian Financial Intelligence Unit (NFIU) to enhance efficiency in both organisations, with the desire to expand the tax net and nudge tax compliance in the territory.
In a statement signed by Mustapha Sumaila, head of corporate communications, FCT-IRS, the acting executive chairman, FCT- IRS, Haruna Abdullahi, said the partnership could not have come at a better time than now.
Abdullahi said this synergy is timely and apt because the service is presently availing itself to all relevant agencies of government and other corporate bodies to broaden the tax base to boost revenue generation.
“FCT has potential, we must do everything possible to harness these opportunities for the territory in terms of revenue collection. Abuja being the capital city is a place where the most important people live, therefore, we must take that advantage.
“States are in a very tight fiscal position right now, monies are not coming as they used to, so there has to be some level of creativity in states and of course Abuja here, to fund so many projects.
“FCT-IRS alone can generate from 200 to 300 and probably 400 billion naira and I hope this type of engagement that we are going to have with NFIU, will increase our taxpayers and also carry out assessments with adequate information,” he said.
The FCT-IRS boss decried the low tax GDP ratio in the country pointing out that Nigeria is among the lowest tax GDP ratio in Africa at six per cent whereas, the average in Africa is 18 per cent based on the OECD revenue statistics report in Africa 2021 and described the development as unfortunate.
Abdullahi, while stressing the importance of information, said the service has started various reforms and initiatives to hold people accountable to file their tax returns and to pay what is appropriate in terms of what they need to pay as tax.
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