The acting Chairman of the FCT Internal Revenue Service (FCT-IRS), Haruna Abdullahi, on Tuesday, said only 10 per cent of registered tax payers in the territory are actually paying tax.
He revealed this at a one-day tax seminar on reviving the culture of filing tax returns in the nation’s capital, adding that this implied that 90 per cent of FCT residents registered for tax did not file their returns.
Abdullahi explained that in response to the challenge and to cushion the effect, the service introduced Key Account Managers (KAM) who followed up with taxpayers via one-on-one basis.
He said, “From our records, the number of taxpayers under the PAYE scheme is about 120,000, with half of the figure comprising staff of Ministries, Departments and Agencies (MDAs) on the IPPIS platform and those working for the FCTA and the area councils.
“This implies that 90 per cent of the FCT residents registered for tax do not file their tax returns; meaning that only 10 per cent 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.’’
While expressing hope that the seminar would address the issue of low tax compliance among the residents, he said, “It is therefore prudent that we develop measures to best mobilise our internal resources.’’
According to the chairman, when the service took over tax administration in the FCT from the FIRS in 2015, the highest amount collected was about N48bn, adding that in 2021 the service collected over N100bn, with an additional N26bn in recoveries of unremitted Withholding Taxes (WHT).
He said, “This year we intend to increase our collection to N150bn and are in good stead to recover some unremitted taxes and levies taking us to a targeted collection figure of N200bn.’’
Abdullahi noted that with enhanced compliance by the remaining residents, the service would provide a steady annual tax income of N300bn to N400bn, making room for high employment, curbing low income and providing enhanced services to the residents.
