Many federal government workers have continued to express concern about the high-income taxes deducted from their monthly salaries through the Pay As You Earn (PAYE) model.
The civil servants who spoke to journalists on Sunday in Abuja said it was frustrating given the country’s current economic situation.
They demanded an immediate reduction in the PAYE tax deducted from their monthly salaries.
They said the huge tax deducted from their monthly salaries had reduced their purchasing power, going by the increasing price of goods and services.
Ese Williams, a civil servant, urged the federal government to revisit the income tax issue, which had placed a huge burden on the finances of civil servants.
She said the new minimum wage had not substantially improved the monthly earnings of government workers, yet the taxes remain high.
“Imagine a level 15 officer with a monthly salary of less than N400,000 paying almost N60,000 tax. It is alarming,” she said.
Ibrahim Abbas complained that the federal government’s policies appeared to be designed against federal civil servants.
“I do not even see any reason to justify the high tax regime that we are subjected to in recent times,” he said. “While we were expecting improvement in our welfare, every policy, from the removal of fuel subsidy to floating of the naira, appears to be against government workers.”
Aliu Sule complained that there was no infrastructure on ground to justify the huge taxes being deducted from the salaries of civil servants.
“We still provide most necessities for ourselves. From security to electricity and water, we devise ways to provide all these for ourselves, so there is no justification to increase our taxes,” he said.
The president of the African Development Bank (AfDB), Akinwumi Adesina, called for greater accountability and transparency in the management of national resources.
Speaking recently at a retreat of the Council of Anglican Provinces of Africa (CAPA), Mr Adesina urged the federal government to be more responsive to the needs of the people.
“Citizens must uphold their responsibilities, but governments must be held accountable,” said Mr Adesina. “There must be transparency, public property, accountability, and responsiveness in the way these resources are used to transform the society.”
“In Scandinavian countries, when people pay taxes, there is a responsibility on the part of governments to provide what society needs,” he said.
All Nigerian residents aged 18 and above earning income from Nigerian sources are required to file personal income tax returns.
This includes salaried employees, self-employed individuals, and those with other sources of income such as investments, rental income, or business income.
Meanwhile, the chairman, Presidential Advisory Committee on Fiscal Policy and Tax Reform, Taiwo Oyedele, said that the proposed tax reform bills would address the situation.
Mr Oyedele said individuals earning about N1.7 million or less monthly would pay lower PAYE tax under the proposed bills.
He said workers earning the new minimum wage of N70,000 and slightly more would also be fully exempted from tax obligations.