THE Federal Capital Territory Administration (FCTA) has inaugurated a Capital Gain Tax (CGT) Implementation Committee to boost Internally Generated Revenue (IGR) in the territory.
The Mandate Secretary, Economic Planning, Revenue Generation, and Public-Private Partnership, Mr Chinedum Kelechi, inaugurated the committee in Abuja.
The News Agency of Nigeria (NAN) reports that the Executive Chairman, FCT-IRS, would chair the committee, while the Director of Tax Operations, FCT-IRS, would serve as secretary.
Other members of the committee include the Solicitor General, the Director of Land Department, the Director of Development Control, the Director of Abuja Geographic Information System, and the Chairman of the Nigerian Bar Association (NBA).
Kelechi explained that the committee became necessary following the FCT Minister Nyesom Wike’s approval to implement the CGT Act, Cap. CI LFN 2004.
“The Act imposes a CGT tax rate of 10 percent on the total amount of chargeable gains accruable to any person upon disposal of his or her chargeable asset.
“Or assets in a year of assessment after deduction of the allowable expenses from the gains made on the asset’s disposal.
“This is to be remitted to the FCT Internal Revenue Service (FCT-IRS) as required by the extant law,” he said.
He added that Wike had equally approved inter-agency collaboration and synergy between the FCT-IRS and other relevant agencies to ensure smooth implementation of the CGT Act.
The mandate secretary said the committee would conduct comprehensive awareness and education campaigns to improve citizens’ understanding.
He also said that the committee would conduct regular stakeholders’ engagement through business associations, chambers of commerce, NBA, and other relevant organisations.
He added that the committee would monitor transactions across stakeholder agencies as well as enforce the CGT implementation in accordance with extant laws.
Kelechi urged members of the committee to collaborate with the judiciary to handle cases of severe non-compliance or fraud as well as establishing a transparent dispute resolution mechanism, among others.
Earlier, the acting Executive Chairman of FCT-IRS, Mr Haruna Abdullahi, said that the CGT was part of taxes that FCT-IRS was empowered by law to collect.
Abdullahi decried the situation where the collection of the CGT due to FCT was less than five percent.
He commended Wike for bringing relevant stakeholders together to work with FCT-IRS to enhance the revenue in the territory. (NAN)