UNILAG AD
  • The Membership Club
  • #EndSARS Dashboard
  • PT Hausa
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
Friday, August 19, 2022
Premium Times Nigeria
  • Home
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Special Reports and Investigations
      • Health Specials
    • Features and Interviews
    • Multimedia
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Special Reports/Investigations
    • Features and Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • #EndSARS Dashboard
    • Parliament Watch
    • #PandoraPapers
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • AUN-PT Data Hub
  • Home
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Special Reports and Investigations
      • Health Specials
    • Features and Interviews
    • Multimedia
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Special Reports/Investigations
    • Features and Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • #EndSARS Dashboard
    • Parliament Watch
    • #PandoraPapers
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • AUN-PT Data Hub
Premium Times Nigeria
BUA Group Ad BUA Group Ad BUA Group Ad
NLC President, Comrade Ayuba Wabba [PHOTO CREDIT: nlcng.org/]

NLC President, Comrade Ayuba Wabba [PHOTO CREDIT: nlcng.org/]

Nigerian workers reject new levy on rents, leases

byBassey Udo
July 24, 2020
Reading Time: 3 mins read
12

The Nigeria Labour Congress (NLC) on Friday rejected the new federal government policy that imposes a maximum 6 per cent stamp duty on all tenancy and lease agreements in the country.

Last Wednesday, the Federal Inland Revenue Service (FIRS) directed landlords and property agents to charge stamp duty on all tenancy and lease agreements with tenants and property buyers.

The stamp duty varies from less than 1 per cent to 6 per cent depending on the duration of the contract.

The FIRS said landlords and property agents are to remit such collections to it as part of efforts to boost the government revenue.

This means tenants in Nigeria and property buyers will now have to pay more to get accommodation or buy/lease property.

But, since the announcement, many Nigerians have registered their rejection of the new policy, which identified the tenant or property renter as the beneficiary of the tenancy or lease agreement.

Insensitive

Some reactions to the new policy described it as ”insensitive and ill-timed”, in view of the precarious conditions many Nigerians are currently facing as a result of the coronavirus pandemic, which has worsened the economic situation of several families.

The NLC, in statement on Friday by its President, Ayuba Wabba, expressed shock at the new policy.

He described it as a new financial burden on poor Nigerians, “coming at a time the socio-economic pressure arising from COVID-19 pandemic has resulted in dislocations that have pushed many Nigerians beyond the limits”.

TEXEM Advert

“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,” the NLC President said.

The union urged the federal government and the FIRS to rescind the harsh fiscal measure “that is boldly insensitive to the material condition of Nigerians.”

Mr Wabba said the new policy would compound the COVID-19 health emergency.

He argued that tenants, whom this new policy was targeting, were some of the most vulnerable people in the society.

“It would be illogical, insensitive and inhumane to churn out laws that make poor Nigerians go to bed at night with tears in their eyes.”

Ill-timed tax policy

The principle of public taxation, especially progressive taxation all over the world, is that the rich subsidises for the poor. Every tax policy that would be enforceable must create a safety net for the poor, the union leader said.

He said recent policies of the government do not show any bend towards being progressive.

“Despite accommodation being a fundamental right guaranteed by Nigeria’s constitution,” Mr Wabba said, “it was 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”.

READ ALSO: NLC president wants downward review of petroleum pump price

This arrangement, he noted, “was indeed a great injustice against the Nigerian poor”.

He urged the government to take deliberate steps to avoid institutionalising the widespread belief that it is a crime to be poor in Nigeria.

Rather than imposing stamp duty on tenants to increase revenue, Mr Wabba urged the government to reduce official graft and corruption to realise its objectives.

“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. 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, Government should tax such property in order to relieve Nigeria’s daunting housing deficits and to generate the needed funds to run government business,” the NLC President said.

With revenue from traditional sources dwindling following the COVID-19 pandemic, which impacted the price of crude oil in the international market, the federal government had adopted several revenue generating strategies to raise money to fund the budget and finance projects.

As part of the new revenue strategies, the government reviewed upward the rate for the Value Added Tax (VAT) from 5 to 7.5 per cent effective on February 1, 2020.

  • Tweet
  • Email
  • Print
  • Telegram
  • More
  • WhatsApp
  • Share on Tumblr
  • Pocket


Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate



TEXT AD: Call Willie - +2348098788999






PT Mag Campaign AD

Previous Post

Dogara: APC mocks PDP, says mass defection looms for opposition party

Next Post

Court orders EFCC to return Mompha’s passport, wristwatches, iPhone

Bassey Udo

Bassey Udo

Bassey Udo is PREMIUM TIMES' Business & Economy Editor. He has covered finance, energy, oil, gas & extractive industries for over a decade. He is a winner of the Wole Soyinka Award for Investigative Journalism, and the Thomson Reuters Foundation (Wealth of Nations) Award for Business Reporting. Bassey is an alumnus of the U.S. International Visitors Leadership Programme. Twitter: @ba_udo

More News

The Director General of the Commission, Federal Competition and Consumer Protection Commission (FCCPC), Babatunde Irukera.

Nigeria’s consumer protection agency orders Google to remove money leading companies from app store

August 18, 2022
Governor Wike and Atiku Abubakar

Atiku dispatches 3-member delegation to Port Harcourt for meeting with Wike

August 18, 2022
A motor park in Lagos

Traffic Congestion: Lagos to lose $21 billion monthly by 2030 – Expert

August 18, 2022
Nigerian finance Minister, Zainab Ahmed [PHOTO: Pulse.ng]

Nigerian govt mulls national summit on removal of petroleum subsidy

August 18, 2022
Nigerian Soldiers on gun truck. [Photo credit: Yahoo]

Security forces clear camp of terror kingpin in Kaduna, discover explosive-making materials

August 18, 2022
Participants at the Media Dialogue on Exclusive Breastfeeding

Only two out of 10 children are exclusively breastfed in Katsina State – UN Report

August 18, 2022
Read All Comment

Our Digital Network

  • PT Hausa
  • Election Centre
  • Human Trafficking Investigation
  • Centre for Investigative Journalism
  • National Conference
  • Press Attack Tracker
  • PT Academy
  • Dubawa
  • LeaksNG
  • Campus Reporter

Resources

  • Oil & Gas Facts
  • List of Universities in Nigeria
  • LIST: Federal Unity Colleges in Nigeria
  • NYSC Orientation Camps in Nigeria
  • Nigeria’s Federal/States’ Budgets since 2005
  • Malabu Scandal Thread
  • World Cup 2018
  • Panama Papers Game
  • Our Digital Network
  • About Us
  • Resources
  • Projects
  • Data & Infographics
  • DONATE

All content is Copyrighted © 2022 The Premium Times, Nigeria

No Result
View All Result
  • #PandoraPapers
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Health
    • COVID-19
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Investigations
    • Investigations
    • Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • #EndSARS Dashboard
  • Projects
    • Panama Papers
    • Paradise Papers
    • Parliament Watch
    • AGAHRIN
  • AUN-PT Data Hub
  • Opinion
  • The Membership Club
  • DONATE
  • About Us
  • Advert Rates
  • PT Hausa
  • Dubawa NG
  • Careers
  • Contact Us
  • Digital Store

All content is Copyrighted © 2022 The Premium Times, Nigeria