By Sarah NEGEDU
The Federal Capital Territory Administration said it will be enforcing the 5 percent Entertainment Tax in 2025, so as to enable the administration meet its huge revenue obligations.
To this end, the consumers will be required to pay a 5 percent tax on all services consumed in restaurants, hotels, bars, lounge, clubs, parks, hall rentals, among other services rendered across the entertainment value chain.
Acting chairman of the FCT-IRS, Michael Ango, who disclosed this plans at an end of year press conference in Abuja, stressed that the service will in the coming year be embarking on aggressive enforcement of existing revenue that were hitherto not fully collected.
Some of such revenue, he said includes the Stamp Duties, Capital Gains Tax and Entertainment Tax amongst others.
He said the efforts was to support the FCT Minister, Nyesom Wike, generate revenue for the infrastructural transformation going on in the territory.
“All these activities require funding which will have to come from the internally generated revenue in the FCT. This is why we are focusing on existing revenue that were hitherto not fully collected in the FCT such as Stamp Duties, Capital Gains Tax and Entertainment Tax amongst others. We are equally collaborating with various agencies to ensure that Abuja residents are properly educated on their tax obligations.
“In addition to the above, we are looking to implement property taxes in the FCT and other such Pools, Betting and Gaming taxes particularly in the light of the recent Supreme Court decisions regarding powers of States to regulate and tax such activities.”
The FCT-IRS boss while providing update on the activities of the service for the year 2024, revealed that the agency met over 101percent of its revenue target of N250.2 billion for 2024.
He announced that the service realised a total of N252,825,484,775.71 billion in revenue collection for 2024, against the sum of 211,100,288,136.36 billion for 2023. This exceeds the collection of 2023 by 19.8 percent.
“This year, we recorded a total revenue collection of ₦252.8 billion, surpassing our target of ₦250.2 billion,” Ango revealed. “This marks a significant leap from last year’s ₦211.1 billion, and it reflects the tireless efforts of our team, the support of the FCT Administration, and the collaboration with other stakeholders.”
On plans for 2025 and beyond, Ango stated that the FCT Administration, through the FCT-IRS will be responsible for collection of revenue on behalf of the Area Councils.
The FCT Internal Revenue Service believes this will help ease compliance by taxpayers in the FCT and improve transparency and accountability for all revenue collection.
Already, he said the service has held series of meetings with the Area Councils where all parties agreed to collaborate on the full harmonization of revenue.
According to him, “in 2025, the FCT-IRS will be responsible for collection of revenue on behalf of the Area Councils, in order to ease compliance by taxpayers in the FCT and improve transparency and accountability for all revenue collection. We are also working with the various SDAs in the FCT to replicate the same for the FCT Administration as directed by His Excellency, the Honourable Minister.”
The FCT-IRS said it will be will be embarking on aggressive enforcement activities against tax defaulters in 2025, warning that it will not hesitate to impose the necessary sanctions and penalties against all taxpayer segments who default on their tax obligations.
