The National Association of Proprietors of Private Schools in the Federal Capital Territory (FCT) has called for the intervention of FCT Minister, Nyesom Wike, regarding the 5% tax imposed on school fees in private schools in Abuja.
Rukayat Agboola, the chairperson of the association, made the appeal in a statement issued by the Abuja Joint Private Schools Associations.
Agboola urged the minister to intervene by suspending 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 stated that the newly introduced tax system outlined by the DQA places a significant financial burden on private schools, many of which are already struggling to navigate the current economic challenges, regardless of their location within the FCT.
“For instance, under the newly introduced tax regime, a private school with say 100 students charging ₦100,000 per term is expected to pay ₦500,000 and ₦1,500,000 per term and yearly respectively.
“A school having 300 students is thus expected to pay ₦1,500,000 and ₦4,500,000 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
Agboola mentioned that the group had previously interacted with the Mandate Secretary for Education and the Director of DQA regarding concerns about the taxes and the inconsistency of the charges on payable school fees.
She explained that the discussions also covered the Value Added Tax (VAT) Act, which exempts educational services from VAT coverage.
“We are disheartened to learn of the approval, as conveyed through a circular posted on the 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, Environmental /Sanitary inspection.
“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 said.
Agboola appealed to the minister to use his influence to halt the imposition of taxes on school fees and to streamline the taxes and levies, while also waiving all outstanding charges payable by private schools.
She suggested that this intervention should be akin to the Renewed Hope Palliative Grant initiated by President Bola Tinubu, facilitated through the minister, to support private schools in the FCT.
Agboola emphasized that such intervention would enable the schools to remain operational and continue serving as reliable partners in the president’s and minister’s efforts to promote mass and quality education.
Furthermore, she requested the opportunity for the group to pay a courtesy visit to the minister to further discuss the issue and collectively devise solutions to enhance the quality of education in the FCT.
