The Nigeria Labour Congress (NLC) has urged the Federal
Government to cancel the six per cent tenancy and lease stamp duty recently
announced by the Federal Inland Revenue Service.
Mr Ayuba Wabba, NLC President said this on Saturday in
Abuja.
Wabba said that the Congress was dismayed by the new policy
stipulating a six per cent stamp duty for every tenancy and lease agreement in
Nigeria.
He said that the Congress condemned the agreement as the new
policy came at a time when the socio-economic pressure arising from COVID-19
dislocations was affecting many of Nigerians.
According to him, the NLC rejects this new stamp duty policy
on rents and leases as it will worsen the situation faced by Nigerian workers
most of whom, unfortunately, are tenants.
“It is also alarming that we are having hike in taxes and
user access fees when other countries are offering palliatives to their
citizens.
“We call on the Federal Government and the Federal Inland
Revenue Service to rescind this harsh fiscal measure as it is boldly
insensitive to the material condition of Nigerians which has been compounded by
the Covid-19.
“Nobody would want to be a tenant if they had alternative.
This means that tenants which this new policy targets are some of the most
vulnerable people in our society.
“It would be illogical, insensitive and inhuman to churn out
laws that make our poor go to bed at night with tears in their eyes,” he said.
Wabba noted that the principle of public taxation especially
progressive taxation all over the world was that the rich subsidizes for the
poor and that every tax policy that would be enforceable must create a safety
net for the poor.
“Accommodation is a fundamental right guaranteed by
Nigeria’s constitution. It is unimaginable that tenants who are in the most
vulnerable group would be expected to pay 6 per cent tax for accommodation when
sales tax is 1.5 per cent.
“This is indeed a great injustice against the Nigerian poor.
Government must take deliberate steps to avoid institutionalising the
widespread belief that it is a crime to be poor in Nigeria.
“We understand that the government needs money to run the
business of governance especially at this time of economic challenges all over
the world.
“But the answer is not in further exploiting the already
exploited. There is no doubt that there are other painless ways of mobilising
funds to deal with the exigency of the times,” he said.
He therefore said that one of such ways of mobilising funds
was to reduce official graft and corruption.
Wabba said that 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.
“Second, there are thousands of unoccupied houses in
different parts of the Federal Capital Territory and indeed many cities in
Nigeria belonging to very affluent members of the society.
“As we have always demanded and canvassed, Government should
tax such property in order to relieve Nigeria’s daunting housing deficits and
to generate the needed funds to run government business.
“While we expect the reversal of the 6 per cent tenancy and
lease stamp duty policy, we remind government that its highest responsibility
is to ensure the security and welfare of every Nigerian,” he said.
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It is unfortunate that this government does not have the interest of the poor at heart. After stealing billions from our collective purse, they still have the gut to exploit the poor through many obnoxious taxes to make up for their looting. One thing is certain, each and every one of them will pay dearly for their crimes against humanity.
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