The National Assembly has finally empowered the Federal Capital Territory Administration to generate revenue for the administration of the territory.
The Senate gave the legal backing to the Federal Capital Territory to generate revenue internally when the upper chamber carefully adopted the harmonized report of both chambers of the National Assembly on a bill soliciting for the Establishment on Internal Revenue Service, which was passed into third reading on Wednesday.
When the bill is assented to by President Goodluck Jonathan, the FCT will no longer depend on the allocation from the Federal Government to survive, which has been the tradition since creation of FCT.
The bill also provided for the establishment of the FCT Internal Revenue Service and Management Board, with the power to sue and be sued, control and administer different taxes within FCT and as well account for such taxes.
It could be recalled the bill was sponsored by the Chairman of the Senate Committee on the FCT, Senator Smart Adeyemi, and after consideration of the Report of Senate Committee on FCT, the Conference Committee that will harmonize the reports of both chamber was set up on October 23, 2014.
Six senators were nominated for the job.
Similarly, the House Conference Committee was constituted on October 28, with seven members of House of Representatives selected.
The bill provides that the board shall be headed by a chairman appointed by the FCT minister subject to the approval of the National Assembly and consist of deputy chairman, six representatives from different departments of the FCT as well as six persons drawn from each of the six geopolitical zones of the country who are knowledgeable in tax maters.
The Service, shall, among others, collect, recover and pay to the designated account any tax or levy due to the FCT.
It will also assess all persons chargeable with tax within the FCT, collect, account and enforce payment of taxes as may be due to the FCT.
In collaboration with relevant agencies, the board will review the tax regime and promote application of tax revenues with a view to stimulating economic activities and development and as well administer, collect and enforce payment of property tax in the FCT.
The Service will also issue a tax payer identification number to every person taxable in the FCT, collate and review all policies of the FCTA that relate to taxation and revenue generation and simultaneously undertake a systematic and progressive implementation of such policies.
The board is also empowered to trace, freeze, confiscate or seize the proceeds of tax fraud and evasion and from time to time determine the extent of financial loss and other losses arising from tax waivers and other related matters.
Reacting on the passage of the bill, senators applauded the third reading of the bill, saying the passage of the come at the appropriate time when the country needs to look for another source of revenue apart from oil, which has slumped drastically.
Follow The Eagle Online Channel on WhatsApp
