FCT minister imposes television and radio tax on residents

* Offices to pay N200, 000-N2m, homes, N5000- N20 000

    CSO threatens law suit
A new move by the federal capital territory to shore up its declining revenue through the collection of  yearly radio and television license fees from private and business owners has been roundly criticized by many residents and a cross section of civil society groups.


The law backing the collection of the fees, the Abuja Municipal Area Council, AMAC told aljazirahnews is linked to section 7 (4th schedule) to the 1999 Constitution of the nation and AMAC Radio Television Bye law.

With the law, which officials of the council said has been in effect since 2013, the authorities can collect diverse amounts of cash from corporate and private residences for the usage of television and radio sets in their premises.

For the past few weeks, the officials of the council have been deployed in large numbers around the metropolis to enforce the law.

An official of the council, who did not want his name disclosed told our reporter that they have been given marching orders to collect the funds accruable from the exercise. He added that the law was backing them so they would ensure that they carry out the exercise to the letter.

From the law, a copy of which the medium has, headquarters of organizations including multinational outfits, banks, oil companies and other corporate establishments are to pay N1.5m yearly for using television sets and radios.

Branches of multinationals, equipment leasing companies, factories, pharmaceutical companies, hotels and similar entities are to pay N1m annually.

While ‘large’ establishments will pay N200, 000, ‘medium’ outfits will pay N100, 000 while ‘small’ outfits will have to cough out a tidy sum of N50, 000 for using the electronic gadgets.

The criteria for judging their size was however not clearly spelt out.

Duplexes are to pay N20, 000, flats, N10, 000, bungalows, N5, 000 and smaller apartments N3, 500.

Communication mast owners are to pay between N1m and N2m for the location and usage of their masts.

The schedule it was gathered that was duly passed by the AMAC legislative arm on the 2nd of January 2012.

Meanwhile some civil society groups have criticized the move calling it an attempt to further impoverish the masses who are already suffering in the wake of removal of petroleum subsidy and economic downturn.

Assistant Secretary General of the Coalition of Civil Society Groups, Wale Martins, told aljazirahnews that the coalition will go to court if the collection of the fees is not stopped immediately.

He also threatened a mass movement against the authorities in the next few days if the issue is not addressed by those concerned.

‘’The action is insensitive, callous and wicked. It is pure madness. For a government that came into government a year ago they have succeeded in crumbling the economy. They have introduced so many taxes and levies in this period without inflating the economy. They have increased electricity tariff by over 40 percent without commensurate improvement. Now they just increased fuel pump price by 100 percent,’’ Martins said inter alia.

He said the new policy is draconian and is capable of killing businesses and causing capital flight through the exit of foreign businesses.

The executive director of the Socio-Economic Right Accountability Project, SERAP, Adetokunbo Mumuni who is also a lawyer in an interaction with aljazirahnews said the enforcement of the policy was ill-timed.

‘It is also exploitative especially in the light of the economic downturn. How much more can the people take? Rather than burden the people, the governments at all levels should plug all leakages in spending patterns and look inwards in curbing wastes in public service,’’ he said.

He advised Abuja residents to rise up against the development by alerting their representatives at the National Assembly.

In a separate reaction, a civil society leader, Olarenwaju Suraj said while the intended medium of revenue by AMAC was already operational in some states, it was however ill-timed since the masses were already suffering economically.

He added that the council needed to have done more sensitization before initiating the new economic burden of citizens.

For business owners like Patricia Onuh, who owns an ICT firm in the city, it is a move which will further weaken her earning capacity. She said though she has paid the fees, she did it with tears.

“I don’t know how they want businesses to survive. I have not stopped crying since I paid the fees.’’

An officer from Radio and Television License office, AMC, who simply identified himself as IK said the fees were legal and that an initial notice of 2 weeks was always given which can be increased by a week.

Efforts to speak with the AMAC chairman, Abdullai Candido was not successful.