By Ofonime Honesty
Something fishy is brewing in the hallowed chambers of the Akwa Ibom State House of Assembly. A private member bill codenamed ‘Real Property Charge Bill is being conceived. And if caution is thrown to the winds, repercussions may saturate the polity.
Yours truly isn’t a prophet of doom, but we must accept the fact this Bill is bound to trigger the fulfillment of plenty doomsday theories. Afterall, it is said in Latin that Vox populi, Vox Dei, meaning the voice of the people is the voice of God.
The Bill, whose lead sponsor is Hon. Usoro Akpanusoh of Esit Eket/ Ibeno State Constituency, prays the House to enact a “Law to make provision for the imposition of land based charges to be called Real Property Charge, for the levying and collection of the charge and for connected purpose…”
Accordingly, the Bill highlights that if passed into Law, it would help in boosting the Internally Generated Revenue of Akwa Ibom State. Dear readers, it is glaring that the Bill is prematurely drafted. I have perused it.
Let’s use former national capital, Lagos, as a case study. Lagos State promulgated property tax in 2001. Before then, successive administrations ensured that enabling policies were put in place to ensure the proper development of landed properties in the state.
The thriving environment led to a boom in investment in the Real Estate Sector. Investors had confidence to sow their monies in the property market. Therefore, in 2001, the Asiwaju Bola Tinubu’s administration realized that having nurtured the sector to maturity, government deserved to reap dividends through taxation. That’s how property tax came into effect in Lagos. Interestingly, Federal Capital Territory, Abuja waited till 2010 to follow the Lagos example.
From the foregoing, it is glaring that the proponents of the Bill in Akwa Ibom are putting the cart before the horse. You cannot place something on nothing and expect it to stand. When it comes to landed property Lagos, Abuja and Rivers State are miles ahead of Akwa Ibom. In Akwa Ibom, property owners bear the entire burden of servicing their properties. The environmental hazards are not also helping matters. When it rains, the state is submerged. Residential buildings, offices and even churches are overrun by flood, lives are lost, lands and cash crops are not spared either. Why should a property owner who loses millions of Naira to avoidable natural hazards be happy to pay property tax? Isn’t it a responsibility of government to safeguard the lives and properties of the citizenry? Our properties must be safe before we are made pay tax.
In other Climes, tax is paid for services enjoyed, not otherwise. Any property based tax must come with dividends. Civil servants pay taxes because of the salaries they earn from government. What benefits do property owners enjoy from the Akwa Ibom State Government? Hereabout, you pay monthly bill for non-existing electricity and water. The Police may not protect you except you “drop something.” We pay for everything. Yes, government builds roads, but that is one of her cardinal responsibilities.
To say that the Akwa Ibom government has refused to develop and invest in landed properties (real estate), which is one of the fastest growing sectors, is a gross understatement. What we have hereabout are properties like multi-billion Naira residential buildings, filling stations and hotels owned by past or serving government officials. The only thriving business is politics. Entrepreneurs work their socks off to make ends meet.
Sponsors of the Bill must be told that the problem with taxation in Akwa Ibom isn’t the absence of relevant Laws. The Akwa Ibom Internal Revenue Service established under Section 85A (1) of the Personal Income Tax Act of 1993 as amended, has the powers of assessment, collection and accounting for tax collected for the state government. Section 85B of the Act spells out all the statutory responsibilities of the agency. Now, has the Assembly been properly performing her oversight function on the agency? Capital No. This is why the revenue service has been infiltrated by fraudsters and quacks. Multiple taxation of the citizenry by different agencies is another major problem.
The refusal and/or inability of the legislature to perform her statutory responsibilities of ensuring that promulgated laws and policies are properly implemented is one of the major problems we are facing. Take for instance, the debt profile of the state. The Akwa Ibom House of Assembly approved humongous loans for the executive arm but failed to monitor how such loans were used. Today, the state has been plunged into debt that will take roughly twenty five years to repay. And, to accept the fact that these loans were collected under the guise of completing supposed flagship projects like the Independent Power Plant (which still remains uncompleted), amongst others, makes one’s heart sink. The House of Assembly should rise to her responsibilities.
Proponents of the Bill are of the opinion that it will make multi-national companies operating in the state to pay commensurate taxes to government. Good point, but things must be clarified. The conditions which foreign and indigenous companies/ property owners operate are at variance to each other. Foreign companies like Exxon Mobil are feeding fat from our natural wealth while indigenous entrepreneurs aren’t granted such privilege. For now, any law meant to compel these multinational companies to do the needful shouldn’t affect the masses. We cannot vomit what we did not consume.
Another curious issue which pops up is that, under the proposed Law, properties on gazette exempted by the state governor shall not be taxed. Giving the governor the liberty to exempt properties to be taxed or not creates room for potential abuse of privilege. If it would be compulsory for a poor man whose only property is an undeveloped land or a bungalow to pay tax, why should a governor be given the liberty to choose who should pay tax or not? This is one of the contentious issues which must be addressed.
In addition to points raised so far in this piece, the fact that Akwa Ibom State is grappling with serious economic challenges should put the final nail on the coffin of this unpopular Bill. Unemployment is threatening to be as tall as Kilimanjaro, cost of living is skyrocketing, enjoying social amenities seems to be a taboo and to worsen issues, we forfeit N300m monthly to service the loans which were converted to Federal Government bonds. Must things get sadder?
Dear readers, before yours truly pauses awhile, the rife call for the dismissal of the Bill should be sustained because something cannot be placed on nothing. Sponsors of the Bill in the House of Assembly should tell us what they, in collaboration with the executive arm, have been doing to nurture the development of landed properties.
I humbly but seriously call on the House to listen to the voice of common sense and put the Bill where the sun never shines.
Yes, this unpopular Bill should be buried. The masses are ready to convey the corpse to Mbiokporo Cemetery. God bless Akwa Ibom State!
Honesty writes from Uyo