The Minister of the Federal Capital Territory, Nyesom Wike, has stated his reason for the approval of drafted property tax regulation for the city.
The Capital profits Tax requires that 10% of all chargeable profits that are accumulated by an individual upon the sale of chargeable assets within a year of assessment be paid in tax.
Property owners in Abuja will have to begin paying property taxes as a result of the change.
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According to the Capital Gains Tax Act of 2004, the FCT’s Internal Revenue Service is credited with starting the application of capital gains tax in the territory.
This revelation was revealed by FCT-IRS Executive Chairman Haruna Abdullahi during a Sunday speech to reporters in Abuja.
According to Abdullahi, the minister has given the go-ahead for a few significant projects that would increase FCT earnings.
He said, “In the last three weeks, the minister has approved some initiatives that are huge and will certainly change the dynamics in terms of the bottom line. Just the other day, we submitted a draft proposal to the minister for the FCT property tax regulation.
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“The FCT-IRS Act empowers the minister to come up with a property tax regulation for the FCT. So we had a long conversation and we suggested it to the minister, and he asked us to come up with a draft regulation, which we did, and he has approved the initiative.
“So we have an inter-agency collaboration whereby we review it because the draft was just done by the FCT-IRS, but that’s not enough, you need other stakeholders. So he approved the initiative to go ahead and review the draft and then come back.
“Subsequently at the end of the day, he will sign the regulation and is gazetted and implemented. So that alone should tell you that there is a huge positive impact on the bottom line of the IGR in the city.”
