Property owners in Abuja are set to face new tax obligations as the Minister of the Federal Capital Territory, Nyesom Wike, has given the green light to a draft property tax regulation for the city.
The FCT-Internal Revenue Service has initiated the implementation of the Capital Gains Tax (CGT) in accordance with the Capital Gains Tax Act 2004.
The CGT imposes a 10 percent tax on the total chargeable gains accrued to individuals from the disposal of chargeable assets in a given year of assessment, after allowable deductions have been made.
Haruna Abdullahi, the Executive Chairman of FCT-IRS, announced these developments during a press briefing in Abuja on Sunday. He revealed that the revenue service had successfully grown the Internally Generated Revenue (IGR) for the capital city to approximately N140 billion.
Abdullahi highlighted key initiatives approved by the minister to boost revenue for the FCT. One major initiative involves the introduction of a property tax regulation, with the minister approving a draft proposal.
The FCT-IRS Act empowers the minister to formulate such regulations. The draft is currently undergoing inter-agency collaboration for review before final approval and implementation.
Additionally, the minister has given the green light for the full implementation of the Capital Gains Tax in Abuja. Abdullahi emphasized the positive impact these measures would have on the IGR, anticipating a significant increase in revenue targets.
He explained, “So you can imagine an FCT with a property tax, a fully implemented Capital Gains Tax, and then about a month ago there was a circular where the minister approved the implementation of Section 85 of the Personal Income Tax Act and Section 31 of the FCT IRS Act.” These developments signify a comprehensive effort to enhance revenue collection and compliance in Abuja.
