Much ado about Kwara’s tax regime

Date: 2012-04-23

If there is anything that is bothering the minds of civil servants in Kwara State today, it is the issue of the controversial tax regime being operated by the state government. UMAR BAYO ABDULWAHAB probes the issue and writes. 

For quite some time now, civil servants in Kwara state have been grumbling over the amount of tax being deducted from their salaries. They cited housing, MDGs, PAYEE among others as tax being deducted from their salaries.

Take on any average Kwara civil servant today on the plights of workers' in the state, the issue of the controversial tax regime and N18, 000 minimum wage will definitely come top of the discussion.

They alleged that whenever there is salary increment, the government will introduce tax to recover whatever that is being paid to workers.

When it appeared that nobody was listening to their plight, the workers' under the leadership of the Nigeria Labour Congress (NLC) at a forum recently in Ilorin publicly expressed their displeasure over what they described as exorbitant tax regime in the state.

The occasion was the International Women's Day celebration observed by the State's branch of the Women Committee of the NLC held at the secretariat of the congress in Ilorin on March 28, 2012.

The occasion had in attendance, the wife of the Kwara State governor and founding trustee LEAH Charity Foundation, Mrs. Omolewa Ahmed, representatives of the Trade Union Congress of Nigeria (TUC), immediate-past chairman of the NLC, Comrade Emmanuel Aiyeoribe, and the special Assistant to the state governor on Labour  matters , Comrade Bisi Fakayode  among others. The state Chairman of the NLC, Comrade Umar Faruq Akanbi was represented by comrade Popoola Babalola.

Chairperson of the NLC women wing and organiser of the event, Comrade Comfort Popoola let the cat out of the bag when in her address, she appealed to the state governor, Alhaji Abdulfatah Ahmed to address the issue of exorbitant tax regime being experienced by workers in the state.

The NLC said the tax being deducted from the salaries of workers in the employment of the state government is higher than what is obtainable in other states of the federation.

Her words, "…We as women Committee of the NLC Kwara State chapter, wish to appeal to our father, the Executive Governor of Kwara state – Alhaji Abdulffatah Ahmed to assist the workers of this state to address the issue of exorbitant tax regime being experienced in the state today; as it is only in Kwara state that so much is being deducted from workers' salaries throughout the Federation."

And like Oliver Twist, the labour leader also calls for the full implementation of the N18, 000 minimum wage saying women are at the receiving end.

"We also want to use this medium to further appeal to  His Excellency to fully implement the  N18,000 minimum wage as we women are at the receiving end, even as we stand against further removal of oil- subsidy, "the union leader added.

The issue of the minimum wage just like the controversial tax regime has generated debate between the state government and its workers.

The state Head of Service, Alhaji Mohammed Dabarako had at different fora explained how government arrived at the current amount being paid to civil servants even as he assured that the state government would review the wage when the monthly federal allocation is reviewed in favour of state and local governments.

Dabarako had in an interview said workers misunderstood the concept of the new minimum wage law.

He said the law does not say all workers should get N18,000 increment across board as it is being expected by workers rather, what the law says is that no worker should receive less than N18,000.which according to him, the state government had implemented.

In a similar reaction, the Special Adviser to the state governor on Labour Matters, Comrade Bisi  Fakayode, said the claim of the Labour that the state was operating an exorbitant tax regime was not true.

He said, "Government is not deducting anything abnormal.  I can say it without any fear or favour. Government is not deducting anything abnormal."

Fakayode called on the NLC to cross check their facts to know that the tax was reasonable.

On the issue of minimum wage, he said the government was paying according to its resources as the 33rd state on the federal allocation table adding that ;‘the  governor has also given a marching order that wages be paid as at when due."

Fakayode, a former NLC chairman in the state between 1991and 1998, described Ahmed's administration as a labour friendly one. He urged workers who might have a different perception about the present administration to correct such.

He said, "I want you workers' to change your mind-set towards this government. This government is not anti-labour."

Advancing reasons why labour should see the present government as friendly to workers, the governor's aide recalled that the era when he served as a labour leader in the state was a trying period for workers.

He said during the period under review, no one dares to parade himself as a labour leader let alone agitate for workers' welfare.

"This is the secretariat where they used to teargas us; this is a secretariat that was more or less an extension of a police station. Here we are today dancing," Fakayode recalled.

But, despite that, the dust raised by the workers agitation is yet to settle down as the issue was  the subject of discourse recently, when the State Commissioner for Information and Communications, Prince Tunji Moronfoye featured on a state Radio programme,  tagged "Platform" hosted by Radio Kwara, monitored in Ilorin.

The programme which was a live phone-in interactive session is also referred to as "the Court of Public Opinion.”

When asked about the controversial tax regime, Moronfoye said the issue of tax regime was beyond the powers of the state government.

The Commissioner explained that the Pay As You Earn (PAYEE) is a Federal Government policy which the state government must implement.

He said, "PAYEE is not the work of Kwara State government but that of the federal government; you pay tax based on what you earn and don't forget that we have increased their salaries, it's a federal government thing. It is beyond the state government. May be we will have to invite Okaru."

Okaru, is the immediate-past chairman of the Federal Inland Revenue Service (FIRS).She stepped down recently after serving for 7 years and 11months.

Explaining the Millennium Development Goals Fund ( MDG) being deducted from the workers' salaries, Moronfoye who was the Special Assistant to the state governor on MDGs between 2009 and 2011,said  the fund is a kind of partnership between government and the people of the state to embark on development projects.

He said the idea was introduced by the former governor of the state, Senator Bukola Saraki that every civil servant should contribute to the development of the state saying that projects executed by the fund are seen as belonging to the community where they were sighted.

The Commissioner said 50% of the projects to be executed with the MDG fund are being contributed for by the people while the government foots the remaining balance of 50%.

On housing, he said the money is to provide houses for civil servants at affordable prices.

Tax is a compulsory contribution paid to government by her citizens to support social amenities such as schools, electricity, potable water, roads and hospitals but are these tax really translated to the benefit of the citizens?

This is the frequently-asked question by not only Kwara people, but Nigerians in general. Until the tax payers' plea bears fruits in them seeing development for which their money is being deducted, there would be suspicion. Governments at all levels must ensure that the tax payers' money is used for intended purposes even at that, the deductions from the citizens hard-earned money should be reasonable.

Source

 


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