The Nigeria Labour Congress has opposed the six per cent stamp duty fee for every tenancy and lease agreement stipulated by the Federal Inland Revenue Service.
It described the new tax as a financial burden on poor Nigerians at a time they were facing socioeconomic pressure arising from the COVID-19 pandemic.
The NLC President, Ayuba Wabba, said this in a statement in Abuja on Friday, entitled,’The Nigeria Labour Congress condemns the six per cent stamp duty on tenancy and lease agreements in Nigeria.’
It read, “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 union called on the Federal Government and the FIRS 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.”
Wabba said nobody would want to be a tenant if they had an alternative, adding that tenants, which this new policy was targeting, were some of the most vulnerable people in the society.
He noted, “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 subsidise for the poor. Every tax policy that would be enforceable must create a safety net for the poor. Recent policies of government indicate otherwise.”
Stressing that accommodation is a fundamental right guaranteed by Nigeria’s Constitution, the congress said it was unimaginable that tenants who were in the most vulnerable group would be expected to pay six per cent tax for accommodation when sales tax was 1.5 per cent.
It described the regulation as a great injustice against the Nigerian poor, stating that the government must take deliberate steps to avoid institutionalising the widespread belief that “it is a crime to be poor in Nigeria.”
The congress said it understood that the government needed money at these times but stressed that the answer was not in further exploiting the already exploited.
“While we expect the reversal of the six 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. It is a social contract, a sacred duty,” the NLC insisted.
