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Only 10% of FCT Residents Pay Tax -FCT-IRS

Only 10% of registered taxpayers in the Federal Capital Territory (FCT) pay their taxes, according to the actingchairman of the FCT Internal Revenue Service (FCT-IRS), Haruna Abdullahi.

He stated this Tuesday at a tax seminar on reviving the culture of filing tax returns in the nation's capital.

Mr. Abdullahi said the service has introduced Key Account Managers (KAM) in response to this.

The KAMs will follow up with taxpayers on a one-on-one basis.

"From our records, the number of taxpayers under the PAYE scheme is about 120,000 with half of the figure comprising staff of Federal Government Ministries, Departments, and Agencies (MDAs) on the IPPIS platform and those working for the FCTA and the Area Councils.

"This implies that 90% of the FCT residents registered for tax do not file their tax returns; meaning that only 10% 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 a one-on-one basis," the chairman explained.

Haruna Abdullahi FCT IRS

He was, however, hopeful that the seminar would address the issue of low tax compliance among FCT residents.

"It is, therefore, prudent that we develop measures to best mobilize our internal resources," he added.

The acting chairman said the highest annual tax collection was about N48 billion when the FCT-IRS took over tax administration in the FCT from the FIRS in 2015.

In 2021, the service collected over N100 billion with an additional N26 billion in recoveries of unremitted withholding taxes (WHT). 

"This year we intend to increase our collection to N150 billion and are in good stead to recover some unremitted taxes and levies taking us to a targeted collection figure of N200 billion," he said.

Mr. Abdullahi noted that the service can generate a steady annual tax income of N300 billion to N400 billion with enhanced compliance by residents.

He also stressed the need to revive the culture of filing tax returns.

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