The Edo State chapter of the National Association of Proprietors of Private Schools (NAPPS) has faulted the state government over 300 per cent personal income tax increment for private school in the state.
The group, which voiced its opposition at news conference in Benin on Friday, noted that the arbitrary tax increase would negatively impact parents and schools in the state.
Dr Lemmy Pare Russel, the state Chairman of the association, said the increase would force private schools to raise their fees, potentially harming their operations.
He explained that increasing school fees would reflect poorly on Governor Monday Okpebholo’s administration, as it could make education less accessible to many families.
Russell also emphasised that the briefing was triggered by the personal income tax assessments recently distributed to private school owners by the Edo State Internal Revenue Service (EIRS).
He stated that the aim of the briefing was to bring the attention of Governor Okpebholo to the sudden and unjustified tax hike on private school owners in the state.
He assured the state government that private schools would continue to pay taxes but demanded a fair tax structure because running a school was social service, not a business.
He mentioned that taxes were typically based on the profits from a business, but private schools were being charged minimum fees per student, adding that this would raise their financial burden significantly.
Russell pointed out that many operational costs, such as local government levies, utility bills, and approval renewals, were not considered in the new tax regime, which added to the challenges faced by private schools.
He expressed concerns that some proprietors, who paid N400,000 in 2024, would now face over N6 million in taxes, indicating an over 1,500 per cent increase, which could force some schools out of business.
Russell noted that this increase affected private school owners across all three senatorial districts in Edo State, with tax hikes ranging from 600 to over 1,600 per cent in various local governments.
In particular, private school owners in Ikpoba Okha and Oredo Local governments saw their taxes rose drastically, with some facing increases of over N7 million, threatening their operations.
Russell urged Governor Okpebholo to reduce personal income taxes for private schools to between 5 and 10 per cent, as it was before his government took office.
In an interview with several school proprietors, including Peter Odion Okungbowa, Dr Mathew Nosa Omoragbon and Mrs Ojeh-Oziegbe Azuka, they appealed to the governor to intervene and prevent the closure of their schools due to the tax increases.
In his reaction, the Executive Chairman of the Edo State Internal Revenue Service (EIRS), Mr Oladele Bankole-Balogun, dismissed the claims, explaining that the EIRS does not have the authority to raise taxes arbitrarily.
Bankole-Balogun emphasised that taxation was governed by law and that no tax could be increased without due legislative process.
“The Revenue Service cannot unilaterally increase taxes for private schools. That claim is false.
“Tax laws are determined by statute, meaning we cannot wake up one day and decide to impose new taxes. Every tax is itemised by law,” he said.
Balogun maintained that complaints about higher tax demands may stem from stricter enforcement rather than any actual increase.
He pointed out that the EIRS was actively ensuring compliance, particularly among individuals and businesses that had previously underreported or evaded taxes.
“The only authority that can increase tax rates for the state is the State House of Assembly, acting on the recommendation of the Governor, and always in line with federal tax laws,” he explained.
He urged Edo residents to embrace taxation as a civic duty, stressing that tax revenue was essential for government projects, including roads, schools, hospitals, infrastructure and security.
