Abasifreke Effiong
Social media campaigns against the Real Property Charge Bill are frosting because of concomitant pro-property charge campaigns championed by paid campaigners.
Speaker of the Akwa Ibom State House of Assembly, Barr. Onofiok Luke
says "tax on residential properties under the Bill will be done in a way
that will not stiffle the people".
Pro-property charge
campaigners are saying that the Real Property Charge Bill which seeks to
impose land based charge on land, houses and any development on land,
water in the State is "pro-poor".
The Real Property Charge Bill
is facing a legal hurdle which strictly limits the number of properties
that will be taxed under the legislation.
But the Akwa Ibom State
Government is particularly interested in getting the Bill passed with
very bogus powers to bring every property owner in the State under the
new tax net.
Section 2 (1) of the Bill stipulates that, "The
charge shall be payable on ALL property, except- property owned and
occupied by a religious body and used exclusively for public worships or
religious education; cemeteries and burial grounds; registered
institution and educational institute certified by the commissioner for
finance, and property specifically exempted by the governor of the State
by notice published in the State government official gazette".
A
few persons working for government though, made wonderful contributions
to tighthen up the Bill during a public held Friday last week at the
House of Assembly.
One of the submissions at the public hearing
shocked sponsors of the Bill. Akwa Ibom State chairman, Nigerian
Institute of Estate Surveyors and Valuers, Estate Surveyor U. U.
Egerton, citing the Land Use Act section 10, said the joy of the
Property Charge Bill seeking to charge ALL property was an aberration to
the constitution.
Egerton said by the provision of that section,
the governor only has the power to impose rent on properties with
Certificate of Occupancy.
"The Land Use Act, which is of course a
part of the constitution, places ground rent only on properties that
are with Certficate of Occupancy", he said.
Section 10 (a) and
(b) of the Land Use Act states inter alia: "Every certificate of
occupancy shall be deemed to contain provisions to the following
effect:- (a) that the holder binds himself to pay to the Governor the
amount found to be payable in respect of any unexhausted improvements
existing on the land at the date of his entering into occupation;(b)
that the holder binds himself to pay to the Governor the rent fixed by
the Governor and any rent which may be agreed or fixed on revision in
accordance with the provisions of section 16 this Act"
"Now, are
we going to say a different thing without amending the constitution? The
formula [of the Real Property Charge Bill] is arbitrary and very very
unprofessional", Egerton added.
Will the House Assembly effect
this amendment? Will it ignore this constitutional provisio just to
bring all property under this tax net?
Egerton's submission, from
the deafening cheers it illicited from the audience during the public
hearing will be a huge setback for the Bill.
Some persons who believe
they will have a covering from this lacuna to evade the tax will by all
sufficient grace avoid C of O.
Lead sponsor and financiers of the
Bill are seriously lobbying to get the Bill passed. The executive has
much interest in the gains the Bill will afford them and the State.
This
will not go without a price! The Governor will pay a price "for wanting
to take over people's houses" as one commentator reacted comically on
Facebook.
Also at the public hearing, the State Surveyor General,
Surveyor Emem Isang pointed to the transfer of consitutional powers and
responsibilities vested in the office of the Surveyor General to
persons the Bill calls "identification officers". She said that was an
aberration.
Isang said, "According to the proposed Bill, section 2
(3), items a, b, and c mention 'Survey', 'Identification officer', and
'Geocordinates' respectively and further mention parcel of land in
square metres.
All these are an attempt to define the Surveyor, his
indispensable duty, method of survey and immediate need for survey.
The
office of the Surveyor General is a major stakeholder in accessing the
worth of land and property thereof, so it should be included in
assessing land".
"According to Cap. 425 of the Laws of the
Federation of Nigeria (Survey Coordination Act) and laws of Akwa Ibom
State, all measurements of land, its extent, and content in the State
must be coordinated by the Surveyor General.
This means that any
measurement on land in the State should be carried out by the Surveyor
General of the State or somebody so dedicated by the Survey General and
must be a registered surveyor", she added.
Government is poised to shut-out civil servants in the line of implementation of the proposed property charge.
"We can't leave this to civil servants. It won't work. We are look at
getting a consultant to do the job once we are done with the Bill",
Leader of the House, Sir Udo Kierian said while reacting to the
submissions by the State Surveyor General.
Will the quest to
increase IGR accounts for a fortiori to cause the House of Assembly to
usurp the constitutional powers vested in the Office of the State
Surveyor General? Can "money be the root of all evil" as the aphorism
says? This is a poser for the House of Assembly!
WHAT PARTICIPANTS AT THE PUBLIC HEARING SAID?
Participants at the public hearing made submissions on the following areas:
a) PROPERTY LIABLE TO CHARGE (Section 1) It was suggested that:
i. Charge be collected on property in designated Urban centres.
ii. Telecommunication masts, oil pipelines, quarries, drilling sites should be included among taxable properties
b) EXEMPTION ON PROPERTY LIABLE TO CHARGE (section 2 (1)) Submissions were made to exempt:
i. A house owned by a pensioner, provided it is not leased
ii. Hospitals and clinics of charitable nature; public schools and
buildings including teachers' quarters within the premises; traditional
shrines, deities and community halls.
iii. A minister's house within a church premises
c) POWERS OF THE COMMISSIONER (Section 3-5)
i. That powers vested in the commissioner in the Bill was too much for one person
ii. That these powers be devolved to at least three persons, so that in
event of conflict, the decision of majority can be sought.
d) i.That the titles, "Identification Officers" and "Assessors" be replaced with Registered Estate Surveyors and Valuers.
ii. That the Office of the State Surveyor General be given a role in the proposed law
iii. Formula for taxation should clearly show tenement rate, development levy and ground rent.
iv. A digitised map of the State and LGAs showing different land uses.
e) SHARING OF THE TAX
i. It should be shared at the end of every month.
f) EVALUATION OF PROPERTY
i. Best valuation or estimated billing should not be used
ii. There should be a definite period (5 years) before re-valuation of property
g) DEFAULT IN PAYMENT OF CHARGE (Section 11)
Submissions were that penalty regime in the Bill was very harsh. Suggestions were:
i. Defaulters be allowed three months grace period, a second three
months grace and a third with a 5 per cent fine (which is in line with
rate approved in the Land Use Act.
ii. If by September any property owner fails to pay the charge, then s/he be arraigned before a revenue court.
h) RECEIVERSHIP (Section 11 (2)) Receivership as an option for taking
over property of defaulters should be discarded because of the legal
intricacies involved. Suggestions were:
i. Establishment of Revenue Court
ii. Defaulters be arraigned before a Revenue Court
ii. Defaulters be arraigned before a Revenue Court
FACTS ABOUT THE BILL THAT SHOULD BOTHER THE GOVERNOR
One, the State Chairman, Nigerian Institute of Estate Surveyors and
Valuers, U. U. Egerton, emphasised that "we cannot tax all property on
one fell swoop, because some of the roads in the villages are very bad
and if you send your men there for taxation, they may not come back".
Your Excellency, I'm afraid this is a truism. Your designated agent,
Romflex will lose some men.
Two, since there is a known and
designated agent, Romflex Nigeria Limited, who is alleged to have spent
well above N20million to get the Bill passed; administration of the tax
regime will stiffle the poor. He will want to recoup his investment
whichever way is available.
Three, the Real Property Charge
regime will lead to increase in house rent. Hence, tenants in rented
houses will bear the bigger brunt.
Four, all the pro-property
charge campaigners say the Bill is "apt and timely". If the Bill is
timely, it is so because it will put more monies in their pockets and
that of the State now oil prices are falling. If this Bill is anything,
it is most untimely.
If the Bill is signed into law by the end of this
year, its implementation will commence next year, about 12 months into
the second term campaigns, and 14 months into the elections.
Considering
public outcry against this Bill and the attitude of our people toward
taxation, the Real Property Charge Bill is a chalice of poison before
Governor Udom Emmanuel.
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