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FCT-IRS pushes tax compliance under new regime

By Sarah NEGEDU

The Federal Capital Territory Internal Revenue Service, FCT-IRS, has intensified efforts to improve tax compliance with the rollout of a new digital platform, as the implementation of Nigeria’s 2025 tax reforms gathers momentum.

The platform, Taxporta, was unveiled on Tuesday during a stakeholders’ engagement with Ministries, Departments and Agencies, MDAs, in Abuja. The platform enables taxpayers to register, file tax returns, make payments and obtain Tax Clearance Certificates online, while the engagement also sensitised participants on key provisions of the new tax laws.

Speaking at the event, the Acting Executive Chairman of FCT-IRS, Michael Ango, said the platform is part of the Service’s digital transformation agenda and is designed to allow taxpayers complete virtually all tax-related transactions without visiting FCT-IRS offices.

“Any serious institution, whether in the public or private sector, must move with the times. This is a continuation of our digital innovation process to ensure taxpayers can access our services from the comfort of their homes or offices without having to visit our offices physically,” he said.

Ango explained that Taxporta is a fully integrated self-service platform through which taxpayers can register, file tax returns, calculate tax liabilities, make payments, generate receipts and obtain Tax Clearance Certificates without third-party assistance.

He added that the portal has been configured to reflect the provisions of the new tax laws by automatically applying statutory reliefs and allowances once taxpayers provide their income details.

“All the allowances provided under the law have already been embedded into the system. Taxpayers simply provide their income information, while the platform computes their tax liabilities, processes payments and generates tax clearance certificates,” he said.

The FCT-IRS chairman expressed confidence that the platform would strengthen voluntary compliance and improve revenue collection across the Federal Capital Territory.

“Our objective is to maximise tax collection. We are not fixated on a specific figure. If our target is N400 billion or N500 billion and we eventually collect N600 billion, that would be a welcome outcome,” he said.

Despite the stricter provisions of the new tax laws, Ango said the Service would continue to prioritise voluntary compliance over punitive enforcement.

“The law provides for penalties, but our first approach is always voluntary compliance. Where taxpayers have genuine reasons for delay, we are willing to grant extensions. Penalties only become necessary when there is deliberate refusal to comply,” he stated.

He said the engagement was organised to familiarise MDAs with the implementation of the 2025 tax reforms, obtain feedback from stakeholders and ensure a seamless transition to the upgraded digital platform while preventing multiple taxation.

Ango also urged residents of the FCT to continue meeting their tax obligations, saying taxes remain the backbone of the Territory’s development and a major source of funding for infrastructure and public services.

He said the ongoing transformation of Abuja underscores the importance of internally generated revenue and sustained tax compliance.

“The reality is that the FCT receives only one per cent of the Federal Government’s allocation from the Federation Account. Consequently, the bulk of resources available for infrastructure and development projects comes from internally generated revenue,” he said.

A major highlight of the engagement was the sensitisation on the implementation of the 2025 Nigerian Tax Reform Acts, during which taxpayers and government institutions were reminded of their obligations under the new legal framework.

Tax Controller, MDA Tax Office, Fatima Abubakar, said every taxable individual, business and government institution must obtain a Taxpayer Identification Number, TIN, adding that the tax authority now has powers to automatically generate TINs for taxable persons using their National Identification Number, NIN.

She also disclosed that taxable income under the new tax regime extends beyond salaries to include allowances and other benefits enjoyed by employees.

“All benefits, whether in cash or kind, are taxable because they constitute perks of office. For example, five per cent of the value of an official vehicle is taxable. Failure to file complete tax returns attracts a fine of N100,000 in the first month and N50,000 for every subsequent month of default,” she said.

Abubakar further warned that MDAs must demand valid Tax Clearance Certificates from contractors before awarding contracts or risk a penalty of N5 million.

Earlier, Director of Tax Operations (Corporate, MDAs and International Organisations), Salome Adeyemi, urged stakeholders to embrace the Taxporta platform to ensure seamless tax registration, filing, payment and issuance of Tax Clearance Certificates.

She said the platform would deepen collaboration between the Service and taxpayers while enhancing revenue generation for the sustainable development of the FCT.

In his remarks, Executive Secretary of the National Assembly Library Trust Fund, Henry Nwauna, described the engagement as a strategic initiative aimed at strengthening collaboration between government institutions and tax authorities.

“This engagement reflects the commitment of government institutions to deepen collaboration, improve mutual understanding and promote compliance with tax obligations in support of sustainable national development,” he said.

A participant and Tax Manager at the Nigerian National Petroleum Company, NNPC, Mohammed Ali, commended the initiative, describing it as a worthwhile engagement that would strengthen stakeholders’ confidence in the Service.

“I think it is worthwhile and very important. It will boost stakeholders’ confidence and demonstrates transparency in the discharge of the Service’s responsibilities,” he said.

The Director of ICT, Ayokanmi Ogunwumiju, also demonstrated the integrated payment solution embedded in Taxporta, highlighting the platform’s security features, efficiency and ease of use.