Federal Capital Territory (FCT) Minister Barrister Nyesom Wike has ordered the implementation of the Personal Income Tax and the FCT Internal Revenue Service Acts 2015 as a requirement for conducting business in Abuja, in an effort to increase revenue in the nation’s capital.

The minister approved the implementation of Sections 31 of the FCT Internal Revenue Service Act, 2015 and Section 85 of the Personal Income Tax Act (PITA), according to Chinedum Elechi, the FCT Mandate Secretary for Economic Planning, Revenue Generation, and Public-Private Partnerships. Elechi made this disclosure to newsmen on Monday in Abuja.

If found guilty, he said, anyone who gives incorrect information or obtains a TCC through forgery or falsification faces a fine of N50,000, up to three years in prison, or both.

He further stated that in the event that a government body or group is found guilty, they might face a fine of N5,000,000, three years in prison, or both.

In order to undertake any business in the FCT, he stated, “all SDAs, corporate bodies, or any person empowered by law shall demand a TCC from any person or enterprise for the last three years preceding the current year of assessment.” This is in accordance with Section 31 of the FCT-IRS Act.

These transactions include the issuance of Certificates of Occupancy, contract awards, construction plan approvals, FCTA loan applications for business, housing, or other purposes, vehicle registration, land applications, and a plethora of other related activities.

“Any government must have taxes in order to function, and it is crucial that each person pay their fair share,” he declared. Tax payment is a civic obligation and responsibility. Ensuring that all eligible taxpayers in the Federal Capital Territory (FCT) fulfill their tax duties is the aim of the laws’ implementation.

The minister wrote the following in a memo that Wike signed: “The Federal Capital Territory Administration FCTA has observed with dismay, lack of implementation and adherence to the provisions of Section 31 of the Federal Capital Territory Internal Revenue Service Act, 2015 and Section 85 of the Personal Income Tax Act (PITA), 2011 (as Amended), which provide for the demand and verification of Tax Clearance Certificates (TCC) from residents of the FCT before rendering services or performance of transactions.

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“Noteworthy is the fact that the Federal Capital Territory Internal Revenue Service Act, 2015 and the Personal Income Tax Act (PITA) 2011 (as amended) mandate that, among other things, Area Councils, corporate entities, statutory authorities, Ministries, Departments and Agencies (MDAs), Commercial Banks, Secretariats, Departments & Agencies (SDAs) of the Federal Capital Territory Administration (FCTA), and others, demand and verify TCC from residents prior to rendering services or completing any transaction.”To be clear, Section 31(5) of the Federal Capital Territory Internal Revenue Act 2015 states that in order to transact any business, including but not limited to, “any department, agency, or official of the FCTA, any Area Council official, any corporate body, statutory authority, or person empowered in that regard by this Act or any other law shall demand a tax clearance certificate for the three (3) years immediately preceding the current year of assessment as a pre-condition.” and will confirm the authenticity by contacting the tax authorities that issued it.

“As a result, before conducting any business transactions, all MDAS, SDAs, commercial banks, corporate, and statutory organizations operating within the Federal Capital Territory (FCT) are required to obtain from individuals, business names/enterprises, and organizations current Tax Clearance Certificates for the last three (3) years and verify with the FCT-Internal Revenue Service for those transactions listed in the schedule attached to this Circular as ANNEX 1.”

“Any individual who violates and disregards this provision, whether an official of MDAs, SDAs, the FCTA, Area Council officials, corporate bodies, statutory Authorities, or Commercial Banks, is guilty of an offense and, upon conviction, faces a fine of N5,000,000.00, up to three years in prison, or both, as stipulated by section 85 (9) of the PITA, 2011 (as amended).”

“Please draw everyone’s attention to the contents of this circular so that it can be put into effect right away.”