Ari Muhammad, the Director of Economic Planning, Federal Capital Territory Administration (FCTA), said FCT could generate N15 billion under the newly introduced Entertainment Fee in 2015.
Muhammad told newsmen on Monday in Abuja that the fee was introduced to increase the revenue base of the FCT.
According to him, five per cent charge will be imposed on people who subscribe to the services provided by hotels, registered restaurants, gardens, Pay TV and internet/GSM service providers, among others within the FCT.
“This is a task that we want to realise 10 to 15 billion naira in the first year; and this will grow in about 25 per cent in the next five years.
So it is one of the major sources of internally generated revenue for the Federal Capital Territory. It is a huge task because anything luxury you want to have, you are going to have to pay that five per cent fees for it; we are really targeting specific areas, education, health, public transportation.
So basically entertainment fee is there to increase the revenue of the Federal Capital Territory; this is revenue you find everywhere in most cities of the world.”
Muhammad said that the fees generated would enable the administration to adequately cater for the poor in the territory
The director said that the charge was also a way of bridging the gap between the rich and the poor.
According to him, the policy is part of the administration’s effort to augment the budget shortfall caused by the decline in the prices of oil globally.
Muhammad said the fee, which had legislative backing, would strengthen the economy of the FCT as it was doing in Lagos, Rivers and Edo states.