FCT-IRS Generates N252bn Revenue

The Federal Capital Territory Internal Revenue Service (FCT-IRS) has announced a revenue collection of ₦252 billion for the fiscal year, reflecting a significant milestone in its efforts to enhance tax compliance and widen the revenue base in Abuja and its environs.

Driving Factors Behind the Achievement

• Enhanced Tax Administration: The FCT-IRS implemented modern tax collection systems, including digital platforms, to improve efficiency and reduce leakages.
• Public Awareness Campaigns: Efforts to educate taxpayers on their obligations contributed to increased compliance.
• Widened Tax Net: The agency successfully brought more individuals and businesses into the formal tax system.

Breakdown of Revenue Sources

The ₦252 billion was generated from a variety of sources, including:

• Personal Income Tax (PIT): A substantial portion came from residents and civil servants in Abuja.
• Withholding Tax: Collected from various transactions within the territory.
• Corporate Taxes: Contributions from businesses operating in the FCT.
• Other Levies: Revenue from property taxes, licensing fees, and other statutory charges.

Strategic Initiatives

• Digital Transformation: The introduction of online tax filing and payment systems has made compliance easier for taxpayers.
• Collaboration with Stakeholders: Partnerships with private organizations and government agencies facilitated smoother operations.
• Data Analytics: Leveraging data to identify non-compliance and improve revenue forecasting.

Challenges and Future Goals

Despite the impressive revenue, the FCT-IRS faces hurdles such as tax evasion, informal sector integration, and public resistance to new tax policies. Moving forward, the agency plans to:

• Intensify enforcement against defaulters.
• Expand its reach to more informal sector operators.
• Enhance taxpayer services to encourage voluntary compliance.

Broader Implications

The revenue boost is expected to strengthen the financial autonomy of the FCT and support key infrastructural and social projects. It also aligns with the Federal Government’s broader push to diversify income sources and reduce reliance on oil revenue.

Conclusion

The FCT-IRS’s ₦252 billion revenue milestone underscores the potential of robust tax administration in driving economic growth. With sustained efforts and innovations, the agency is poised to achieve even greater successes in the coming years.