The Nigeria Labour Congress, NLC has rejected the new stamp duty policy on rents and leases, saying it will worsen the already deplorable situation faced by Nigerian workers most of whom, unfortunately, are tenants.
NLC said It is also alarming that Nigeria is having a rash of hike in taxes and user access fees when other countries are offering palliatives to their citizens.
In a statement signed by its President Ayuba Wabba the organised labour said it observed with dismay the new policy by the Federal Government through the Federal Inland Revenue Service (FIRS) stipulating a 6% stamp duty fee for every tenancy and lease agreement in Nigeria.
Wabba said that the new financial burden on poor Nigerians comes at a time when the socio-economic pressure arising from Covid-19 dislocations is pushing many Nigerians beyond the limits..
Labour calls on the Federal Government and the Federal Inland Revenue Service to rescind what it describes as harsh fiscal measure as it is boldly insensitive to the material condition of Nigerians compounded by the Covid-19 health insurgency.
NLC added that Nobody would want to be a tenant if they had alternative.
The labour congress added that the new policy was targeted at the most vulnerable people in the society, most of whom are tenants, stressing it would be illogical, insensitive and inhumane to churn out laws that make the poor go to bed at night with tears in their eyes.
Labour said the principle of public taxation especially progressive taxation all over the world is that the rich subsidizes for the poor noting further that every tax policy that would be enforceable must create a safety net for the poor, arguing that recent policies of government indicate otherwise as accommodation is a fundamental right guaranteed by Nigeria’s constitution.
It said in parts that it is unimaginable that tenants who are in the most vulnerable group would be expected to pay 6% tax for accommodation when sales tax is 1.5%.
This is indeed a great injustice against the poor Nigerians. The NLC Said that Government must take deliberate steps to avoid institutionalizing the widespread belief that it is a crime to be poor in Nigeria…” end of quote.
It said it understands that the government needs money to run the business of governance especially at this time of economic challenges all over world.
But the answer is not in further exploiting the already exploited. The organization says There is no doubt that there are other painless ways of mobilizing funds to deal with the exigency of the times like reduce official graft and corruption.
It says it does not make sense to ask Nigerians to make sacrifices when they are daily regaled of putrid stories of how public officials are accused of swallowing money in billions and making a comic of ‘fainting’ afterwards.
Labour said another option the property tax on the thousands of unoccupied houses in different parts of the Federal Capital Territory cities in Nigeria belonging to very affluent members of the society.
Labour said while it expects the reversal of the 6% tenancy and lease stamp duty policy, it reminds government that its highest responsibility is to ensure the security and welfare of every Nigerian.
Editor :Tunde Orebiyi
