The Academic Staff Union of Universities (ASUU), has asked
the federal government to increase the education tax from 2.5 per cent to 10
per cent to fix the infrastructure deficit in the country’s tertiary
institutions.
Emmanuel Osodeke, ASUU president, spoke in Abuja on Thursday
during the unveiling of 50 books published by Nigerian authors and sponsored by
the Tertiary Education Trust Fund (TETFund).
Osodeke said an increase in education tax would empower
TETFund more to address the infrastructure deficit in tertiary institutions
across the country.
“Everyone knows that what is happening in most tertiary
institutions is through the instrumentality of TETFund. So, increasing TETFund
funding will go a long way in achieving that, whether we can go to 10 per cent
currently is a conversation that will be held somewhere else,” the ASUU
president said.
The education tax is regulated by the Tertiary Education
Trust Fund Act of 2011.
The act imposes a two per cent tax on the assessable profits
of all companies in Nigeria.
Funds derived from the tax are used for rehabilitation,
restoration, and consolidation of tertiary education in the country by TETFund.
The union leader commended President Muhammadu Buhari’s
administration for raising the education tax from two per cent to three per
cent.
“I am aware the current administration has done a lot in
this regard. Mr President in just two years has taken two bold steps,” he said.
“I know there is a degree of pushback from industries, from
NECA about the issue of multiple taxations and the difficult operating
environment, but seeing how important education is to national development,
this president on two occasions; last year it was increased from 2 to 2.5 per
cent and in the current Finance Bill, Mr President has ensured that it is
increased to 3 per cent.”
“I don’t want to preempt until it is signed, but that shows
the commitment of the president that wants to leave a legacy.”
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