8th November, 2023
By Philip Yatai
The Federal Capital Territory Administration (FCTA) has set the process of strict implementation of Capital Gain Tax (CGT) in motion with the inauguration of a committee saddled with driving the process.
FCT Minister Nyesom Wike recently approved the implementation of CGT in the territory.
This was in line with CGT Act Cap. CI LFN 2004 imposes a CGT tax rate of 10 per cent 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.
It is believed that the implementation of CGT will improve revenue in FCT where there is a high turnover in the sale of property, Mr Chinedum Kelechi, the Mandate Secretary, Economic Planning, Revenue Generation and Public Private Partnership, FCTA said while inaugurating the committee in Abuja on Tuesday.
The Executive Chairman, FCT-IRS, would chair the committee, while the Director, Tax Operations, FCT-IRS would serve as secretary.
Other members of the committee include the Solicitor General; the Director, Land Department; the Director, Development Control; the Director, Abuja Geographic Information System; and the Chairman of the Nigerian Bar Association (NBA).
Kelechi explained that the committee became necessary following FCT Minister Nyesom Wike’s approval to implement the CGT Act, Cap. CI LFN 2004.
“The Act imposes a CGT tax rate of 10 per cent 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 that the committee would conduct comprehensive awareness and education campaigns to improve citizens’ understanding.
He also said that the committee would conduct regular stakeholder engagement through business associations, chambers of commerce, NBA and other relevant organisations.
He added that the committee would monitor transactions across stakeholders, and agencies as well as enforce the CGT implementation under 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 establish 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 per cent.
He commended Wike for bringing relevant stakeholders together to work with FCT-IRS to enhance the revenue in the territory.