By Abubakar Yunusa
The National Association of Proprietors of Private Schools (NAPPS), in Abuja, has opposed the new tax structure that the Department of Quality Assurance in the FCT Education Secretariat placed on its members.
This is even as NAPSS also stated that private schools, regardless of where they are located in the FCT, bear a heavy financial burden from the recently enacted tax system, which was described by the Directorate of Quality Assurance (DOQ).
In an appeal letter to the FCT Minister Nyesom Wike, on Thursday, the association whose chairperson Rukayat Agboola claimed that the new system will result in a rise in the number of children who are not in school.
In a memo, the Head of Account, Department of Quality Assurance of the Education Secretariat, Mudi Muhammed had said “Following the approval of the Minister of the FCT for a review of operational charges.
“You are by this letter informed that the old rate of charges cease to be valid as of 31/12/2023 and the new rate of charges effective 1/1/2024.
“Under the new rate, each school is billed according to the tuition charged and the number of enrollments. As a consequence, each school has its peculiar bill. You should also note that all application(s) are now N40,000.”
Agoola expressed concern in their letter, though, about the financial burden that the increased expenses are placing on parents who are ultimately responsible for paying for education.
As per their assertion, this tax structure could unfavorably result in a rise in the number of youngsters who are not in school in the Federal Capital Territory.
A significant review of school fees is about to happen, the chairperson added, unless the Minister intervenes to prevent the Department of Quality Assurance from enacting the 5% charge.
The proprietors also said: “In our previous engagement with the DOQ, we highlighted the adverse effects of this tax on parents and schools, emphasizing the potential rise in the out-of-school children population due to economic hardships faced by families.
“Despite our efforts to advocate against the tax, we were disheartened to learn of its approval, as conveyed through a circular by the Head of Accounts.
“Honorable Minister, the burden of taxes and levies on FCT private schools has become overwhelming, leading to the frustration and closure of many institutions.
“Considering the current economic challenges, we earnestly appeal for your kind intervention to protect private school proprietors as essential partners in the quest for mass education in the FCT.”
NAPSS member speaks
Alpha Mohammed, a member of the group, told our correspondent that attempts are underway to convince the DQA that imposing a five percent tax on parent-paid school tuition is equivalent to imposing Value Added Tax, even though educational services are exempt from VAT.
Mohammed said “Charging or increasing any fee in the education sector amounts to waging economic war on the parents who obviously will bear the brunt of any additional levy on private schools.
“It is very funny that the FCT Education secretariat is introducing a new tax at a time when the presidential committee on tax reform has promised investors that it will harmonize multiple taxes to bring about the ease of doing business in Nigeria,” he said.
Presidential panel advises govt to drop 190 multiple taxes
To end double taxation, the Presidential Committee on Fiscal Policy and Tax Reforms suggested in October 2023 to halt the 190 levies that were strangling the nation’s enterprises.
President Bola Tinubu received the panel’s “Quick Win Report” and approved its extensive suggestions about tax and spending policies.
