Wednesday, December 18

Abuja Private School Owners Seek Wike’s Intervention Over 5% Tax

The National Association of Proprietors of Private Schools in the FCT has urged the intervention of FCT minister Nyesom Wike on the five per cent tax imposed on school fees in private schools in Abuja.

Rukayat Agboola, the association’s chairperson, made the call in a statement signed by the Abuja Joint Private Schools Associations.

Ms Agboola appealed to the minister to intervene by halting the implementation of the tax imposed on payable school fees in all private schools in the FCT by the Department of Quality Assurance, DQA under the Education Secretary, FCT.

She said the newly implemented tax system outlined by the DQA imposes a substantial burden on private schools, many of which were struggling to weather the current economic storm irrespective of their location within the FCT.

“For instance, under the newly introduced tax regime, a private school with, say, 100 students charging N100,000 per term is expected to pay N500,000 and N1,500,000 per term and yearly, respectively. A school having 300 students is thus expected to pay N1,500,000 and N4,500,000 per term and yearly, respectively.

“The retrospective application of the tax starting from the day of registration and accreditation of each school will further exacerbate the financial challenges faced by longstanding educational institutions,” she said

Ms Agboola said that the group had earlier engaged with the mandate secretary for education and director, DQA, on concerns about the taxes and the inconsistency of the charges on payable school fees.

She said issues discussed included the Value Added Tax Act, which exempts educational services from value-added tax coverage.

Mr Agboola said despite the group’s efforts to convince the DQA to drop the idea of a five per cent tax imposition charge on school fees.

He stated, “We are disheartened to learn of the approval, as conveyed through a circular posted on social media under the hands of the head of accounts, DOA Mudi Mohammed.

”The burden of taxes and levies on FCT private schools has become overwhelming, leading to frustration and closure of many private institutions. There are many taxes and levies that FCT private schools contend with annually.

”These are tenement rate, premises inspection, continuous habitation, Abuja Municipal Area Council (AMAC) Signage, ARCON Registration, DOA levy, and Environmental /Sanitary inspection.”

Ms Agboola added, “Also Mobile Advert for school buses, FIRS and FCT-IRS, NSITF, CAC Annual return, CAC Company Income Tax, PAYE on Staff, DOA Yearly dues, DOA Accreditation and DOA Re-Accreditation.”

She appealed to the minister to use his good office to halt the imposed taxes on school fees, harmonise the taxes and levies, and waive all outstanding charges payable by private schools.

She said this should be the Renewed Hope Palliative Grant of President Bola Tinubu through the minister to private schools in the FC.

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