NLC Hails Income Tax Payment By President, Govs

The Nigeria Labour Congress (NLC) Chief Economist, Dr. Peter Ozon-Eson has lauded the recent decision of the Federal Inland Revenue Service (FIRS) to compel the president, vice president, state governors and their deputies to pay tax on their allowances.

The chairman of the Federal Inland Revenue Service (FIRS), Mrs Ifueko Omoigui-Okauru had announced recently that the president, vice president, governors and their deputies would have to pay tax on their income, stressing that the decision of FIRS was based on the Amended Personal Income Tax Act.

The Personal Income Tax Bill was passed by the National Assembly in May 2011 and signed into Law by President Goodluck Jonathan on June 14, 2011.

The NLC Chief Economist stated that the inclusion of the president and governors, among others is a progressive and welcome development to the organised labour.

Dr. Ozon-Eson pointed out that it was abnormal for the president, vice president, governors and their deputies not to pay personal income tax over the years, stressing that the law that exempted them was clearly a misnomer.

He stated that the amendment was welcome because, if they earned income in this economy, then they should pay tax like everybody else.

According to the labour chief economist, the law as it existed before was anachronistic, therefore the amendment to it in that respect was merely in line with reality of the moment.

He said that the previous personal income laws were made by the colonial government and sustained by the long years of military rule, noting that even though the country had continued to make amendment to some of the colonial laws, the basic structure of the laws were not changed.

He maintained that the development would enhance the revenue accruing to the country from income tax, adding that a lot of workers in the private sector earned huge sums but defaulted in paying personal income tax.

According to him, the nation’s reliance on only oil revenue can be best diluted if there is efficient system of assessing income, in getting records of incomes, transactions so that everybody eligible will pay, noting that this can really have an increase in the revenue derivable from the personal income.