FCT to raise N15b IGR through entertainment tax, others
Targets wealthy residents, luxury items
AS part of measures to improve Federal Capital Territory Administration (FCTA) internally generated revenue (IGR), the administration said that it has introduced a new tax regime, which would make the management of hotels in the FCT, cable operators as well as operators of relaxation gardens to remit an annual 5% tax to it. Tagged entertainment/event levy, the FCT administration said the measure was designed to rake in between N10b to N15b annually to boost internally generated earnings.
FCTA Director of Economic Planning, research and statistics, Ari Mohammed who disclosed this while briefing the press yesterday in Abuja said that the recognition of the importance of liberating people from the shackles of poverty necessitated the introduction of entertainment/event levy by the administration which he noted was targeted at tasking the rich people who lives in affluence to reach out to the poor with a view to providing the much needed infrastructure for a better living.
He said, “It’s obvious that revenue from the government is dwindling. The levy is targeted at the rich who live in affluence and those who also patronize event centres, hotels, restaurants, bars, nightclub and pay TV. They are expected to pay five percent of total cost of what they consume, different from the compulsory five percent Value Added Tax, (VAT).
“If you go to London, Dubai, Lagos and recently Cross River state, each of these cities has its own way of collecting similar revenue. It is a fee on luxury. The Minister of FCT, Senator Bala Mohammed felt we must be our brother’s keeper and you are expected to show love to the poor in the society and also contribute to the provision of basic infrastructures as well as maintain existing ones. The government is reminding you that there is a poor man out there or a sick pregnant woman that government need to support. These are fees levied on the rich to better the lot of the poor.
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