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6% stamp duty on rent agreement is a harsh fiscal measure – NLC

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NLC to FG: 6% stamp duty on tenancy agreement is a harsh fiscal measure

The Nigeria Labour Congress (NLC) has kicked against the 6% stamp duty fee for every leases and tenancy agreement stipulated by the Federal Inland Revenue Service. This means that the federal government expects Nigerians to pay tax on rent and other tenancy agreements.

NLC speaking on the FG development described the new tax as a financial burden on poor and indigent Nigerians at the moment when COVID19 pandemic has eaten deep into the economy of every homes and business. Noting that many Nigerians have lost their jobs while several earn half pay and some only survive on commission made on good soles which is a resultant effect of the COVID19 pandemic.

The NLC President, Ayuba Wabba made known in Abuja on Friday in a statement entitled, “the Nigeria Labour Congress condemns the 6% stamp duty on tenancy and lease agreements in Nigeria”.

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“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” the statement reads in part.

“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 has therefore called on the Federal Government and the FIRS to reverse the decision as it is a harsh fiscal measure as it is boldly insensitive to the material condition of Nigerians which has been compounded by the COVID-19 health insurgency.”

Comrade Wabba said that the policy target is at the vulnerable Nigerians as nobody would love to be a tenant if they had any other option and adding salt to their injury is more killing.

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“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” he noted.

“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” he concluded.

GOVTOROS

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