Senate imposes property tax in FCT

… to generate N100bn revenue annually The Senate today passed the Federal Capital Territory (FCT) Internal Revenue Board Bill 2014, introducing property tax in the capital city. The new legislation is the first of its kind since the creation of the nation’s capital in 1976, our correspondent reports.According to Senator Smart Adeyemi whose committee processed […]

… to generate N100bn revenue annually

The Senate today passed the Federal Capital Territory (FCT) Internal Revenue Board Bill 2014, introducing property tax in the capital city.

The new legislation is the first of its kind since the creation of the nation’s capital in 1976, our correspondent reports.
According to Senator Smart Adeyemi whose committee processed the bill, said thee FCT currently receives N250 million as statutory allocation from the Federation Account while it had proposed a N30 billion as its budget 2014.

Adeyemi who chairs the FCT committee said  the bill also created the FCT board of internal revenue which is charged with responsibility of harnessing the IGR of the capital city.

 

He said, “With the coming of the board in place, the FCT would be able to generate revenue internally and that will help to augment what is coming from the federation account.

“However, this board when it is established and fully operational and it spreads its tentacles for internally generated revenue, we expect that additional sum not less than N100 billion would be generated from FCT.

The new legislation which was first introduced in 2011 is establishing  the FCT Internal Revenue Service charged with the responsibility of making assessment, levying and collection of tax on real property within the FCT.

Section 8 of the bill stated that the service shall have the power to “adopt measures to identify, trace, freeze, confiscate or seize the proceeds of tax fraud or evasion.”

“The Board shall establish and maintain a fund to be applied towards the discharge of its functions which shall consist of and to which shall credit-(1) an amount not more than 10 percent of all revenue by the service in the preceding year as administrative charge or cost of collection…”

A new clause was introduced on imposition and administration of tax on real property which is payable on all real property situated in designated areas within the FCT.

Section 24 (2) lists those exempted from property tax in the FCT. They are: properties owned by religious bodies; cemetery, especially where it is non-profit making; parks or public square; the diplomatic community since they enjoy diplomatic immunity.

Others are, public library; palaces of recognised traditional rulers; non government organisations offering social welfare service, buildings used for learning and education and also, those used solely for community games or sports.

Section 24 (3) (1), of the bill empowers the board to “cause all taxable, real property in the FCT to be appraised at least once in every five years.”

It also stipulates that all taxable property must be appraised at its market value as of January 1 in the year of appraisal.

 

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