The Federal Capital Territory Administration (FCTA), yesterday, threatened sanctions against individuals, organisations and agencies violating its order that tax clearance certificates be presented before transactions within the territory.
The FCTA, while lamenting the huge expenditure it incurred in provision of infrastructure and essential services, said residents would gain a lot if taxes were paid regularly.
Minister of the Federal Capital Territory (FCT), Malam Muhammad Musa Bello, who was represented at a town-hall meeting on the demand and verification of tax clearance certificates by Ministries, Departments and Agencies (MDAs), commercial banks and corporate bodies before transactions, by the FCT Permanent Secretary, Olusola Adesola, in Abuja, threatened to commence immediate arrest and prosecution of tax evaders in the FCT.
“I, therefore, use this opportunity to send a strong warning to tax evaders to desist from their actions. Not only are their actions morally wrong as they ride on the sweat of others but their actions are also serious criminal offences for which they can face very severe penalties upon conviction,” Bello said.
He noted that the FCTA had the mandate to build for the nation a capital territory that is comparable to the best in the world, adding that for over four decades, Abuja has indeed turned out to be a very beautiful city as testified by visitors to the city.
“It must, however, be admitted that if we are to provide world class infrastructure for the city, we need a greatly-improved revenue base, which can only be attained by a robust tax policy where all who call FCT home also contribute through taxes for its development,” the minister added.
He, however, pledged to address issues of multiple-taxation in the territory, adding: “We are not unmindful of complaints about multiple taxation and other sundry challenges in our tax regime.
“This matter is also of grave concern to us and we are taking measures to resolve the issue because it also impacts negatively on our efforts of encouraging investment in the territory.”
Meanwhile, Executive Chairman of the FCT Inland Revenue Service, Haruna Abdullahi, in an earlier remarks, made it clear that the existing law provides that “failure to demand and verify a tax clearance certificate presented by an individual is liable to sanctions and possible conviction with a fine of N5 million or three years imprisonment or both the fine and imprisonment.
“I would urge all residents and relevant stakeholders to choose voluntary compliance over compulsion.
“I would like to briefly reiterate that it is imperative that a tax clearance certificate is demanded as a pre-condition for various transactions in the FCT and it is instructive to note that the law requires such from government ministries, departments, agencies and commercial banks,” he stressed.
