The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has given his approval for a property tax regulation that will affect all property owners in the city.
The regulation is part of the initiatives to boost the internally generated revenue (IGR) of the Federal Capital Territory.
According to the FCT-Internal Revenue Service (FCT-IRS), the regulation will enable the implementation of the Capital Gains Tax Act 2004, which requires property owners to pay a 10 percent tax on the profit they make from selling their assets.
The Executive Chairman of FCT-IRS, Haruna Abdullahi, made this known to journalists in Abuja on Sunday.
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He said the minister had approved the draft proposal of the regulation, which was prepared by the FCT-IRS, and had directed the agency to collaborate with other stakeholders to review and finalize it.
He said, “The FCT-IRS Act empowers the minister to come up with a property tax regulation for the FCT. So we had a long conversation and we suggested it to the minister, and he asked us to come up with a draft regulation, which we did, and he has approved the initiative.
“So we have an inter-agency collaboration whereby we review it because the draft was just done by the FCT-IRS, but that’s not enough, you need other stakeholders. So he approved the initiative to go ahead and review the draft and then come back.
“Subsequently, at the end of the day, he will sign the regulation, and is gazetted and implemented. So that alone should tell you that there is a huge positive impact on the bottom line of the IGR in the city.”
Abdullahi added that the FCT-IRS was working hard to improve its service delivery and compliance level and urged the residents and businesses in the FCT to cooperate with the agency and pay their taxes promptly.