The recent National Assemblys strong stance against collection of tenement rates from property owners in Abuja, by the authorities of the six Area Councils in the Federal Capital Territory (FCT), if closely looked at could greatly affect the Internally Generated Revenue (IGR) base of the respective councils. Tarkaa David writes.While the widely reported warning to the council authorities to henceforth stop the collection of tenement rates from property owners in their respective domains could be seen to some as a welcome development that would check the menace of double taxation, there is a glaring chance that it may impugn negatively on the ingenuity of those steering affairs at the grassroots level of governance to perform satisfactorily.Ordinarily, tenement rates are those property taxes imposed on landlords and or occupants of a building payable to Area Councils as part of their IGR, but most recently, the collection of such rates has become a controversial issue in the FCT.As expected, while reacting to the latest development, the chairman, Abuja Municipal Area Council (AMAC), Abdullahi Adamu Candido insisted that the council chairman remains the constitutional custodian of tenement rates collection within his or her domain.Briefing newsmen, Candido argued that AMAC has the constitutional mandate to demand and collect tenement rate within the area under its coverage in accordance with Section 7 and the fourth schedule of the 1999 constitution, as amended.According to him, the Local Government Act, Laws of FCT, 2006 and the Taxes and Levies Act, 2004, as well as the AMAC Tenement Rate Collection Bye-law, 2012, laid credence to his stance.He added that AMAC has had several court judgments in its favour in disputes arising from the tenement rate collection, citing the judgment delivered by Justice D. Senchi of the FCT High Court against the FCT Minister on February 27, 2013.The Council boss recalled that on May 12, 2014, the Court of Appeal, also delivered a judgment in its favour on the issue; noting that all the judgments expressly recognised and validated the legality and power of the council to collect tenement rates within its jurisdiction.We are armed with the constitution that is backing us, and even after litigation, we are still armed with judgments from the courts- that ruled in favour of the provision of the constitution empowering local governments to collect tenement rates.The fact that Nigerians are exposed to reading what is contained in the newspapers and what have you, and before you know it, the negative effect could be that they would go to the length of saying nobody should pay tenement rates again.As far as the Federal Capital City is concerned, the municipal authority remains AMAC. It is the constitution that mandated us not me as an individual or anybody as an individual but the local government is backed up by law to collect this tenement rate. This is our stand.So, we are not against them; they have every right and reason to express their views. But the National Assembly is the most important and well respected institution, as one that can better protect not just the sanctity but the supremacy of our constitution.And we are not fighting any institution, we are not in confrontation, what we are only doing is letting the citizens know that publicised stance of the National Assembly, should not be a source of concern, as the Area Council that they are paying tenement rates to is and still remains the custodian of this collection, and so it would be, he stated.Furthermore, commenting on an existing Memorandum of Understanding (MOU) purportedly entered into by his predecessor, ceding collection of tenement rate to the FCT Inland Revenue Service, the chairman said Im not under any obligation to respect that, because this is a new government that believes in the rule of law-working strictly with the constitution of the Federal Republic of Nigeria.Yes, somebody in the past intimidated the past Administrations of the Area Councils and forcefully made them to enter into an understanding to relinquish their right to collect tenement rates; that was the out gone government, but this government cannot allow itself to be intimidated.And I wouldnt like to say somebody in the National Assembly is feeling bad about the manner at which collection of tenement rate is being pursued. But if it is so, as an institution, we can still be approached and be advised on the right way to go all out to collect this tenement rate. The underlining factor remains that we are defending the constitution.Interestingly, for allegedly defaulting in the payment of tenement rates, AMAC intensified clampdown on no fewer than 300 business and residential premises, with the comprehensive sealing exercise, following a court order, empowering them to seal off affected premises. The enforcement team was accompanied by some security operatives from the Department of State Security Service (DSSS), Nigerian Police and Nigerian Security and Civil Defence Corps (NSCDC) while visiting some defaulting premises in Garki, Central Area, Jabi amongst others, where it enforced the said seal off order accordingly.For instance, it was learnt that the owners of Savannah Suites in Garki Area 3 since 2009 have a total debt of N21 million, whereas Sabondale Plaza in Jabi with the annual bill of N696, 800 have not paid since 2013.Speaking during the exercise, AMACs Chief Revenue Officer (CRO), Danlami Awaje, said the enforcement of the unpaid tenement rates was based on a court order to seal off over 300 premises, for failing to pay their varying rates to the council.He said the action became imperative due to the attitude of the owners of the affected properties.For now, this is the first batch of the more than 300 properties. And when we talk about tenement rate, it is not just on business premises, but including residences in the council.And in revenue collection, the first thing we do is to give demand notice, stating how much to pay; and after 21 days, we issue a 7-day reminder notice, we also give another 3-day final notice, thereafter, we send intention to prosecute, and if you dont respond, we then charge you to court. That was what we did.And on getting to the court, some of them (defaulters) came, while some did not turn up. At the end, the court issued an order to seal any property that has not paid. So we are carrying out the court order accordingly, he explained.As it stands, despite the current dwindling economic situation, Candido-led AMAC has continued to embark on laudable people-oriented projects across the 12 wards of the council. The ongoing projects, which include roads construction, water supply, rural electrification, supply of medical equipment among others, are all capital-intensive.Nevertheless, even before the issuance of the controversial directive by the lawmakers, due to inherent abuses in the process, AMAC had organised an in-house training for its staff in the Councils Revenue Department, in a bid to keep the revenue collectors up to date with modern techniques of collecting revenue in the council. This will no doubt ensure that they understand what they are expected to do; this training is expected to broaden their knowledge on all aspects of revenue generation.By reason and experience, revenue is a critical factor in the effective administration of any organisation; and no organisation would survive with porous revenue base. Thats why the focus should be to make sure that revenue collectors in the councils are in tune with the current trend, necessary for effective revenue generation.By so doing, what is due to the councils as tenement rates are not only collected at the right time; but are accounted for, to enable them provide essential services to the people.To substantiate the above claims, LEADERSHIP Friday carried out an opinion poll to know who the people feel should collect tenement rates.Mr Amaechi Ekwe, a trader at Wuse market and resident of AMAC said thatSenate stance on tenement rate is an attempt to enrich themselves at the expense of a Nigerian man who depends on basic needs of life provided by the government (area council).Amaechi added that the area councils should be the ones receiving tenement rate because they are closer to the people and know exactly what the people need.He added that for the various markets, there are representatives who easily go the council and make a case in times of problems but the federal government is too far and sometimes inaccessible. the federal government is agitating for tenement rate due to personal or selfish interest.Amaechi further stressed that the senators/representative members are working for themselves. The people who sanitise and maintain Wuse market are hired by AMAC.Our big question is, how do we reach the federal government' Three weeks ago, the chairman of AMAC, Hon Abdullahi Adamu Candido visited and cleared all attachments but the FG has never shown up with regard to our welfare.
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