Nigeria: Actionaid Asks FG to Abolish Tax Waivers for Multinationals


Michael Olugbode in Abuja

The ActionAid has called on the federal government to abolish tax waivers to multinationals and increase both property and luxury goods taxes in order to generate funds to fund its budget.

The ActionAid Nigeria gave the advice yesterday, while reacting to International Monetary Fund’s (IMF) demand that public sector employee costs should be cut, a move which was estimated to lead to loss of jobs.

The organisation noted that in Nigeria already, the level of poverty was high as well as the fact that wages received by workers were inadequate despite the introduction of higher minimum wage by the present administration.

The non-governmental organisation said: “Although there have been increases in the public sector wage bill at the federal level, there is evidence of wage cuts or freezes at the sub-national level.

“Despite the provision in the Minimum Wage Act, 2019 (Amendment Act) that provides for N30,000 minimum wage, compliance at the subnational level remains weak. Public financial reforms at the subnational level that are geared towards improving the quality of public service delivery by prioritising workers welfare, should be pursued and implemented.”

The organisation added: “In light of the need for effective service delivery, there is a need to intensify efforts towards blocking revenue inflow to the federal government in other to make more funds available for funding the social sector and the nation’s overall development.

“One way to do this is by abolishing tax waivers to multinationals. Property and luxury goods tax could also be increased.”

The trade union and other stakeholders were advised to be very active in the political space and become major influencers of government policies and decisions, insisting that this would put them in a position of anticipating policies moves and engaging at an early stage before they are adopted or passed as legislations.

The ActionAid said for the trade unions and stakeholders, effective engagement at public hearings at the National Assembly where bills are discussed before they are considered for passage into laws will also be important.

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Source link : https://allafrica.com/stories/202110130208.html

Author : This Day

Publish date : 2021-10-13 08:34:14

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