Abuja Private School Owners Reject FCT’s 5 Percent Tax Regime

Private school owners in the Federal Capital Territory, Abuja, have taken a stand against the recently imposed 5% tax regime by the Department of Quality Assurance under the FCT Education Secretariat. The National Association of Proprietors of Private Schools (NAPPS) expressed their disapproval in a letter addressed to FCT Minister Nyesom Wike, signed by the association’s Chairperson, Rukayat Agboola.

Agboola highlighted concerns that the new tax system, affecting private schools regardless of their FCT location, would result in a surge of out-of-school children. The Head of Account at the Department of Quality Assurance, Mudi Muhammed, had communicated the changes, stating the cessation of the old rate as of December 31, 2023, with the new rate effective January 1, 2024.

Under the revised charges, schools face bills based on tuition and enrollment numbers, with additional application fees set at N40,000. Private school proprietors, in their appeal, expressed worry about the financial strain on both schools and parents. They cautioned that the imposed tax might force a reconsideration of school fees, potentially leading to an unfortunate rise in out-of-school children within the FCT.

The association argued against the 5% charge, contending that it resembled Value Added Tax (VAT) on school fees, despite educational services being exempt from VAT. Notably, they found irony in the timing of this tax introduction, as the presidential committee on tax reform had pledged to streamline multiple taxes for a more business-friendly environment in Nigeria.

In their plea to Minister Nyesom Wike, the Proprietors emphasized the overwhelming burden of taxes and levies on private schools in the FCT. They underscored the adverse impact on both parents and schools, urging the Minister’s intervention to protect private school proprietors as crucial contributors to mass education in the region.