FCT chosen as tax harmonization model; Committee advocates technology in revenue collection

By Philip Yatai
Abuja, September 27, 2024 (NAN) – The Presidential Commission on Budget Policy and Tax Reform has identified the Federal Capital Territory (FCT) as a model for implementing tax harmonization across Nigeria. The announcement was made by the Chairman, Mr. Taiwo Oyedele, during a meeting aimed at harmonization of revenue administration, which held in Abuja on Friday.

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The meeting, organized by the FCT Internal Revenue Service (FCT-IRS) for Area Council Chairmen, aimed to address challenges in tax collection and administration. Oyedele stressed that harmonizing and simplifying tax structures would not reduce revenues but instead increase overall revenue generation.

“Tax harmonization and simplification, together with achieving equality and fairness in revenue administration, are crucial areas of reform for our committee,” he stated. Expressing support for the FCT-IRS initiatives, he called on the FCT and other states to eliminate unorthodox tax collection methods, especially those found on highways and streets, labeling them as “shameful and unacceptable.”

Oyedele advocated the use of technology in revenue collection, highlighting its potential to eliminate tax evasion and improve transparency. He urged all stakeholders to work together in tackling the problem of multiple taxation in the country.

The FCT has the potential to lead the nation in creating a business-friendly environment, and a concerted effort is needed to achieve this goal. Speaking at the meeting, the Acting Executive Chairman of the FCT-IRS, Mr. Michael Ango, commended the Area Council Chairmen for their commitment to the tax harmonization project, reiterating the importance of stakeholder engagement.

Ango said FCT Minister, Mr Nyesom Wike, is committed to increasing internally generated revenue to improve infrastructure and social services in the area. He also committed to developing a robust technological framework to ensure efficient and transparent revenue administration.

Mandate Secretary for Economic Planning, Revenue Generation and Public-Private Partnerships, Mr Ubokutom Nyah, reiterated the minister’s commitment and urged full support for the harmonization initiative.

Representing the area councils, Kuje Chairman Alhaji Abdullahi Sabo welcomed the appointment of FCT as a model for tax harmonization and assured support for the successful implementation of the initiative. He expressed confidence in the ability of the FCT-IRS to effectively collect and distribute revenue fairly, citing recent improvements in the area under the leadership of the current Minister.