Outrage over FCT Perm Sec’s N2m Radio, TV  Tax Initiative

Residents and companies in Abuja are enraged over a harsh tax regime, “Radio and Television Tax”, imposed on the people by the Federal Capital Territory Aadministration(FCTA). The tax regime, which has already taken effect, is said to be an initiative of the Permanent Secretary, Dr Babatope Ajakaiye.

This is coming at a time the nation is grappling with recent fuel price and electricity tariff  hikes imposed on the nation by ailing President Mohammadu Buhari’s government especially when the possibility of fully implementing the 2016 budget is receding.

The new tax regime implemented by the Abuja Municipal Area Council (AMAC), expects telecommunications companies that own masts to pay N2 million while corporate organisations are to pay N1.5 million.

Although there is no criteria for the payment distribution, the document sighted by Pointblanknews.com shows that headquarters of multinational companies, factories, pharmaceutical companies, hotels and equipment leasing companies are to pay N1.5 million yearly for using radio and television sets.

The  law which AMAC authorities say is backed by Section 7 (4th Schedule) to the 1999 Constitution and the AMAC Radio Television Bye Law, expects “large”companies to pay N200,000, medium outfits to pay N100,000 while small outfits are to cough out N50,000.

In the law, which an official said would be “implemented to the letter” lists further payment schedules to include duplexes N20,000, flats N10,000, bungalows N5,000 and small apartments N3,500.

The new tax regime, Pointblanknews.com gathered, is a deal initiated by the FCTA Permanent Secretary, Dr Babatope Ajakaiye, who retires next year, at a secret meeting with newly sworn in chairman of the FCT Area Councils introduced the tax regime which he said the administration was using to shore up its revenue base in view of dwindling resources  which has reduced the government to paying a salary wage bill of N4.1 billion after paying contractors the sum of N30 billion.

It was further gathered that the permanent secretary is providing a private firm which he told the chairmen would “assist them in collecting revenue at a small percentage” in conjunction with the staff of the councils.

But the development has drawn the ire of residents and Civil Society Organisation (CSOs).

“We will resist this criminal insensitivity. Does this administration plan to tax people to death. This is a clear case of inability to lead. Do they even think before they act? People are still reeling with fuel price hike, electricity tariff, and now this Radio, TV tax. Is this how to fix the economy by imposing evil taxations on Nigerians”, Johnson Adire, a resident said.

Ann Okere,   business owner  at the popular Wuse Market simply described it as “a wicked act”. She said she paid with bitterness in her heart since they shut down her firm before she was forced to pay.

A Non Governmental Organisation, Peoples Right Initiative (PRI) said it would challenge the tax regime in court.

“We shot down the park and pay policy initiated by the former minister, Bala Mohammed which was illegal. It is so illegal to charge people for using radio and television in their houses. It is illegal and even illiterate whoever introduced it. We will meet them in court”, Dele Adigun, Head of the organisation, said.