We won’t accept 6% stamp duty on rent – NLC

NLC president Ayuba Wabba has has urged the Federal Government to cancel the six per cent tenancy and lease stamp duty recently announced by the Federal Inland Revenue Service.

Mr Ayuba Wabba, said this on Saturday in Abuja.

Wabba said that the Congress was dismayed by the new policy stipulating a six per cent stamp duty for every tenancy and lease agreement in Nigeria.

He said that the Congress condemned the agreement as the new policy came at a time when the socio-economic pressure arising from COVID-19 dislocations was affecting many of Nigerians.

According to him, the NLC rejects this new stamp duty policy on rents and leases as it will worsen the situation faced by Nigerian workers most of whom, unfortunately, are tenants.

“It is also alarming that we are having hike in taxes and user access fees when other countries are offering palliatives to their citizens.

He said “Nobody would want to be a tenant if they had alternative. This means that tenants which this new policy targets are some of the most vulnerable people in our society.

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“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 per cent tax for accommodation when sales tax is 1.5 per cent.

“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 mobilising funds to deal with the exigency of the times,” he said.

He therefore said that one of such ways of mobilising funds was to reduce official graft and corruption.

Wabba said that it does not make sense to ask Nigerians to make sacrifices when they are daily feast of putrid stories of how public officials are accused of swallowing money in billions and making a comic of ‘fainting’ afterwards.

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