Just In : FCTA To Take 10% On Assets Sold By Abuja Residents As Wike Reintroduces Capital Gains Tax
The Nyesom Wike-led Federal Capital Territory Administration (FCTA) has constituted and inaugurated a Capital Gain Tax Implementation Committee for the FCT to boost Internally Generated Revenue (IGR).
The Mandate Secretary, Economic Planning, Revenue Generation and Public-Private Partnership, Barr. Chinedum Kelechi, who inaugurated the committee on Tuesday, announced that the implementation was in line with the Capital Gains Tax (CGT) Act, Cap.CI LFN 2004 (as ).
According to him, the Act imposes a CGT tax rate of 10% on the total amount of chargeable gains accruable to any person upon disposal of his/her chargeable asset or assets in a year of assessment after deduction of the allowable expenses from the gains made on the disposal of the asset. This would then be remitted to the FCT Internal Revenue Service as required by the extant law.
L-R; FCT-IRS Acting Chairman, Mr Haruna Abdullahi and the Mandate Secretary, Economic Planning Revenue Generation and PPP, Barr Chinedum Elechi
He revealed that the Minister also approved inter-agency collaboration and synergy between the FCT-IRS and other relevant agencies that would work for the smooth implementation of this CGT Act.
Stating the terms of reference, the Mandate Secretary charged the committee to conduct comprehensive awareness and education campaigns to improve citizens understanding and also regular stakeholder engagement through business associations, chambers of commerce, Nigeria Bar Association and other relevant organisations.
He urged the committee to conduct monitoring of transactions across the stakeholder agencies and enforce the implementation of CGT in accordance with extant laws.
Kelechi enjoined members to collaborate with the judiciary to handle cases of severe non-compliance or fraud as well as establish transparent dispute resolution mechanisms among others.
On his part, the Acting Executive Chairman, FCT-IRS, Mr. Haruna Abdullahi, explained that CGT is part of tax types the Service is empowered by law to collect but however lamented that only less than 5% of what is due from capital gain tax is being generated.