The House of Representatives Committee on the Federal Capital Territory (FCT) has said the collection of tenement rate by the six area councils was illegal and should be suspended immediately pending when the issue was resolved.
The committee, chaired by Rep Herman Hembe (APC, Benue), said during an interaction with the officials of the FCT that based on the memorandum of understanding entered between the area councils and FCTA, it is the FCT Inland Revenue Service (FCTIRS) that was supposed to collect taxes relating to tenement rates.
Hembe said based on the provisions of the law, the area councils could delegate the FCTIRS to collect taxes on their behalf, which was what they did in the MoU, adding that for them to collect the taxes after the agreement amounted to double taxation.
“Anybody collecting any form of tax in the FCT is doing so illegally. The body that is supposed to do that is the FCTIRS,” he said.
The committee consequently asked both the FCTA and the areas councils to put a stop to the collection of tenement rates in the territory.
However, a member of the committee, Rep. Zaphania Jisalo (PDP, FCT) raised a point of order informing the committee that based on the provisions of the constitution, they could not entertain the matter.
Besides, he said, the six area councils had approached the court and obtained an order on the matter, but Hembe stood his ground that the committee could deal with the matter, a development that forced the committee to go into a closed-door session.
After the closed-door session, Hembe announced that the matter would be adjourned to another date for the issue to be resolved and directed the FCTA and the area councils to stop the collection.
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