Labour rejects 6 percent stamp duty on tenancy
The Organised Labour has kicked against the recent policy of the federal government stipulating that Nigerians will henceforth pay 6 percent stamp duty on every tenancy and lease agreement.
In separate statements, both the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) urged the federal government to look elsewhere in looking for funds to run the government and not by adding another financial burden on Nigerians already struggling with the effect of Covid-19 pandemic.
NLC President Ayuba Wabba on his part said government should rather consider taxing owners of empty houses around the country by way of generating more funds to execute her programmes.
Ayuba said: “The Nigeria Labour Congress rejects this new stamp duty policy on rents and leases as it would worsen the deplorable situation faced by Nigerian workers most of whom, unfortunately, are tenants. It is also alarming that we are having a rash of 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 health insurgency. Nobody would want to be a tenant if they had an alternative. This means that tenants in which these new policy targets are some of the most vulnerable people in our society. It would be illogical, insensitive, and inhumane to churn out laws that make our poor go to bed at night with tears in their eyes.
“The principle of public taxation especially progressive taxation all over the world is that the rich subsidizes for the poor. Every tax policy that would be enforceable must create a safety net for the poor. Recent policies of government indicate otherwise.
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% tax for accommodation when sales tax is 1.5%. This is indeed a great injustice against the Nigerian poor. The government must take deliberate steps to avoid institutionalizing 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 mobilizing funds to deal with the exigency of the times.
“One such way is to reduce official graft and corruption. 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’ afterward. We cannot just continue to treat ourselves like this.
“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 society. As we have always demanded and canvassed, the Government should tax such property to relieve Nigeria’s daunting housing deficits and to generate the needed funds to run government business.”
The TUC, in her statement which was signed by Comrades Quadri Olaleye and Musa Lawal as president and general secretary respectively, wondered why some countries of the world were given palliative to her citizens but the Nigerian government is doing everything possible to keep connecting from the citizens.
The statement said: “There are many bills Nigerians pay without enjoying commensurate services. Already, tenants pay rent, agreement, caution, maintenance, LAWMA, Power Holding Company of Nigeria (PHCN), security, etc.; if they again add 6% charge on rent it makes nonsense of the new minimum wage which many states are not even paying. How do we feed our families and pay school fees? The country needs money, no doubt, but do you cut the nose to spite your face?
“Why task the people more when you have not managed the loans collected; revenue from multiple taxes, VAT, money from fuel hike, etc. well? It is shameful that FIRS is asking for such at a time the taxpayers’ money is being mismanaged by agencies of government. The NSITF and NDDC are currently being probed by the National Assembly over financial impropriety. The question is: have they managed the trillions of naira that daily accrue to the federation account well? Why must the poor be squeezed just to enrich those in government?
“We are calling on the Federal Government to immediately order the FIRS to stay action if it does not want to incur the wrath of workers and Nigerians. The government should make use of the recovered loot and also widen the tax net to include a large number of the rich if the country desperately”.
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