How Touts Posing As Revenue Officers Frustrate Businesses In FCT

In October last year, Mr Peter Egbe who lost his job during the coronavirus pandemic decided to set up a fast food restaurant.

Peter, a supervisor in one of the Hotels in Abuja had been sacked by his company in April last year during the lockdown that was declared by the Federal Government to contain the outbreak of the Coronavirus pandemic.

To enable him survive the biting effect of the covid-19 induced lockdown, he quickly applied for a loan with a Microfinance Bank and used the fund to set up the restaurant business.

Peter said one of his business strategies was to use the social media to reach out to customers as well as deliver orders to them wherever his services are needed.

To achieve this objective, he quickly bought three motorcycles and branded them with the name of the fast food restaurant.

He said, “I knew that operating such type of business would require the necessary permits and I made sure all the payments were made to avoid being harassed.”

Few days after the home delivery business commenced, Egbe said thugs posing as revenue officers started to harass the riders of the motorcycles by asking for various permits.

He explained, “One afternoon, the riders went to deliver an order to a customer and on their way, they were stopped by some boys who were holding sticks and other dangerous weapons.

“They introduced themselves to my staff as Task Force and told him that they wanted to see the permit of stickers that were posted on the motorbikes.

“At that point, the bike rider called me and I quickly went there. On getting there, I showed them all the necessary documents that were used to register my business and they told me I still needed to ‘settle’ them since I don’t have any permit from the local government.

“When I refused giving them money, they pounced on the motorcycles and took away the keys. I was forced to cough out N6,000 before they could let us go.”

Another business man who gave his name as James Adesanya told our correspondent that he was attacked while driving his vehicle used for the distribution of his pure water business.

He said, “I own poultry and the business is registered. I also pay my tax and other levies to the government and I ve never defaulted since I started this business few years ago.

“One day, I went to use my Toyota Sienna to distribute my products to some of my customers who had placed orders and could not come pick their products.

“I was on my way to distribute the product when some boys jumped on the way, stopped me at Lugbe junction and demanded for vehicle sticker. I told them I don’t have it since my vehicle was purely for private use. But they declined and said that I was using my vehicle for commercial purposes and I must be made to pay the N35,000.

“At this point, I became angry and we started having heated argument. Before I knew it, some of them forced their way into the car and asked that I should drive to their office. I refused and they started molesting me. It was at this point that I had put a call through to one of my friend who is a soldier to come to my rescue. But before he could get to where I was, they have damaged some of the eggs, broken my side mirror and ran away.”

In recent times touts have been unleashing terror on innocent motorists and other commuters, particularly new entrants into the city with no idea of their operational location.

Their main targets are vehicles with branded company name and logos, school busses, unbranded vehicles that are mostly used by corporate organisations and trucks/haulage vehicles among others.

They openly harass, intimidate and in some cases, extort huge amount of money from unlucky drivers after wasting their time.

Their action, according to findings is against the provisions of the law.

Specifically, Section 3 of the Levies Act of 1998 stipulated that no person including a tax authority shall mount a road block in any part of the federation for the purpose of collecting any tax or levy.

The Act states, “A person who collects levies or tax or mounts a road block or causes a road to be mounted for the purpose of collecting any tax or levy in contravention of section 2 of this Act is guilty of an offence and liable on conviction to a fine of N50,000 or imprisonment for three years or to both such fine and imprisonment.”

But despite these provisions of the law, many business owners have come under attacks and intimidation by some of these revenue officials who demand one form of tax/levy or the other

Narrating his ordeal, the Managing Director, G-Complex Nigeria Ltd, Abdulhamid Zari said some of his workers were brutalised by officials of the Abuja Municipal Area Council over claims that the company failed to pay annual vehicle permit levy.

The workers, according to Zari were beaten to stupor by the AMAC Revenue Collectors along the popular Gwarimpa junction in the Federal Capital Territory during an official assignment.

He said the workers were attacked with matchets and other dangerous weapons while two vehicles belonging to the company were confiscated.

They were inflicted with serious injuries on their heads, hands and other parts of their bodies and had to be rushed to Maitama General Hospital for treatment.

Zari described the action of the revenue collectors as illegal in view of the fact that it contravenes the provisions of the law, adding that as a construction company, it was wrong for the revenue collectors to be demanding sticker permit when the company is already fulfilling its obligation to the government in the area of taxes.

He said, “The Company was registered in 2012 for the purpose of employing Nigerians in environmental projects, construction and other businesses in the FCT,

“We have contributed to many projects such as waterways projects in Jahi, we have constructed a road that leads to Gishiri village and we are also working on a road to AP filing station. As a construction company, you must have service vehicles and these are some of the vehicles here at Utako Police station.

“These vehicles on daily basis move staff and materials from one point to another and this company has employed more than 2,000 workers.”

Explaining how the construction workers were attacked, he said, “Yesterday I was called by the driver of this pick-up that on his way to convey materials and take staff from Idu to our yard in Jahi, hoodlums blocked him at Gwarimpa junction and demanded that he should provide daily receipt of Abuja Municipal Area Council and he said he works for a construction company and there is no need for him to have such receipt.

“From that point, these people insisted that it is either he pays the money or they will confiscate his vehicle and because they are in large number, he succumbed that he would pay the money.

“They demanded N200 and as soon as he brought the money out to pay, they demanded the particulars of the vehicle. As soon as he showed them, they said the car does not have a sticker which they said is being sold for N35, 000.”

He called on the FCT Administration to call to order the Local Government Chairman, alleging that the chairman is the leader of those harassing people under the guise of revenue mobilisation.

He added, “This should stop. The FCT Minister may not be aware of this development and there is need to bring his attention to it.

“It is painful for somebody to wake up and go to work and end up going back home with one hand and nobody is saying anything about what happened. We are calling on the government to take prompt action and bring this people to book.

“These thugs are behaving like terrorists in the FCT. No law is backing these people to do what they are doing. The law is clear that any person that blocks government road in the name of collecting levy or taxes is liable of three years imprisonment or fine of N50,000 or both.

He threatened that if nothing is done by the Police or the FCT Administration, the Company will have no other option than to go to court.

“We will write to the government, if they don’t do anything, we will take legal action,” he added.

Findings revealed that individuals and companies running businesses in the Federal Capital Territory are likely to be subjected to up to 45 state and area council taxes or levies,

Based on the Taxes and Levies Act (as amended), about 20 revenue items can be collected by the local governments, in addition to the 25 items that can be collected by states or the FCT.

The FCT Administration and Area Councils, especially Abuja Municipal Area Council have been at loggerheads over rights to some revenue collection, with small businesses being at the receiving end of being taxed by both tiers of government.

The challenge of multiple taxation is caused by the ambiguity in the existing tax laws as well as the widespread ignorance of the limitations of taxing powers.

According to an FCT Internally Revenue Service document Service, Report, there is need for an amendment of existing laws to streamline the number of taxes, fees and levies that can be collected by both the FCT and Area Councils.

According to the Report, the enactment of a Revenue Collection Code for the FCT will clearly prescribe who collects what, how and when and by so doing boost the ease of doing business and also encourage business owners.

The report also suggested the use of a “Centralised collection mechanism or platform and automation of collection points.

“Thus one central body should be responsible for collection of all taxes and levies within the FCT and thereafter beneficiaries can be credited with what is due to them.”

Worried by this development, the House of Representatives last week declared as illegal, levies being imposed on businesses by area councils in the Federal Capital Territory, ordering the task forces to suspend their activities.

A member of the House from Kogi State, Mr Tajudeen Yusuf, had moved a motion calling for the suspension at the plenary on Tuesday.

It was titled ‘Investigation of Alleged illegal Levies by the Federal Capital Territory Area Councils on Business Outlets and Premises in the Area Councils.’

Yusuf said, “Business outlets and private enterprises have been under threats, intimidation, and coercion by task forces operating in the Federal Capital Territory area councils under different guises, forcing business owners to pay illegal levies which are not remitted into the government coffers but private pockets of task force officials.

‘The House is concerned that revenues meant to boost the economy of the capital territory are diverted by task force officials from Abuja Municipal Area Council and other area councils who extort supermarket operators, hotels, cafeterias, furniture shops, artisans, and other businesses.

“The House is disturbed that the continued extortion of business operators in AMAC and other area councils in the Federal Capital Territory under the guise of collecting levies, tenement and other charges by task forces is affecting businesses as some entrepreneurs who cannot cope with multiple levies are forced to reduce their workforce, particularly hotel owners.

“The House is alarmed that with the rising effects and fallout of the COVID–19 pandemic, which has thrown the country into economic recession; if the illegal activities of task forces are not stopped by relevant government authorities, it will lead to loss of jobs, impact negatively on the economy and increase insecurity.”

The lawmaker, therefore, prayed the House to “urge the Federal Capital Territory Administration to, in the interim, suspend the activities of the task forces in all area councils of the FCT pending the completion of the investigation.”

He also urged the House to mandate the Committees on FCT and FCT Area Councils to “investigate the matter and report back within four weeks for further legislative action.”

The lawmakers unanimously granted the prayers.