Governor Ayodele Fayose of Ekiti State has faulted the Federal Government’s decision to increase the workers’ Pay As You Earn, PAYE, tax, pension and National Housing Fund (NHF) deductions, which were applied on gross salary, making some of the workers to have as much 30 per cent reduction in salary.
He described the policy as obnoxious and capable of impoverishing the already pauperised workers, especially now that the country is under an economic recession. The governor said it was wicked and inhuman for any government to increase taxes on workers salary at this period of economic recession when “workers take home can no longer take them home,” adding that; “The Federal Government should stop believing that the only way it can take Nigeria out of recession is to impose obnoxious taxes that will further impoverish the people.”
Fayose and BuhariFayose and Buhari In a statement issued yesterday by the governor’s Special Assistant on Public Communications and New Media, Lere Olayinka, he said; “If government does not have capacity to increase workers salary at this trying period, it should not also increase taxes that will cause decrement in what they earn.” Salary of Federal Government workers was reportedly reduced through increment in PAYE tax, pension, National Housing Fund, NHF, formerly based on consolidated, which were applied on gross salary.
Some of the workers had as much as 30 per cent pay cut. Reacting further, Governor Fayose said it appeared that the President Muhammadu Buhari-led All Progressives Congress, APC, federal government’s desire was to kill Nigerians with obnoxious taxes. He said; “As military head of state, Buhari used gun to deal with Nigerians, now as a civilian president, he is using economic recession to punish Nigerians and adding salt to injury by using inhuman taxes to reduce workers salary.”
“Buhari’s government increased petrol price from N87 to N145 per litre, kerosene; diesel and gas price was increased, electricity tariff was increased, N50 stamp duty was imposed on bank customers, N65 levy was imposed on every withdrawal on ATM, various bank charges introduced, custom duties increased and now workers’ PAYE tax has been increased.