Minister Threatens Tax Evaders as FCT Annual Sanitation Bill Hits N6bn

Olawale Ajimotokan in Abuja

The Federal Capital Territory Minister, Mohammed Musa Bello has sent strong warning to tax evaders that they are liable to severe penalties upon conviction.

He issued the warning yesterday, at a town hall meeting on the demand and verification of tax clearance certificates by Ministries, Departments and Agencies (MDAs), commercial banks and corporate bodies before transactions.

The minister, who was represented by FCT Permanent Secretary, Mr. Olusade Adesola, said there would be sanctions against individuals, organisations and agencies that violate its order that tax clearance certificates be presented before transactions within the territory.

He noted that the FCT Administration has the mandate to a capital city that is comparable to the best in the world, adding they have delivered on the mandate. He said Abuja has turned out to be a very beautiful city as testified to by visitors to the city.

He, however, stressed that if the administration was to continue to provide world class infrastructure for the city, it was important to improve the revenue base that could only be attained by a robust tax policy where all FCT residents contribute through taxes to its development.

He disclosed that the FCT administration expends over N6 billion annually on the sanitation of the city and N3 billion on water treatment every year even though what it earns from water tax was only N2 billion.

“We call on you to demonstrate your responsibility by paying not just your taxes but by paying the bills you ought to pay. In this way we will be able to provide quality services that will make Abuja truly a city of your dream,” Bello said.

In his remarks, the Executive Chairman of the FCT Inland Revenue Service, Haruna Abdullahi, noted that the existing law provides that failure by MDAs and commercial banks to demand and verify a Tax Clearance Certificate presented by an individual was liable to sanctions and possible conviction with a fine of N5 million- or three-years imprisonment or both the fine and imprisonment. He urged all residents and relevant stakeholders to choose voluntary compliance over compulsion.