Workers Embark on Strike over 10% Tax Increase

Following the decision of the Nasarawa State Government to increase tax deduction of workers’ salary from 5 to 10 per cent has forced the workers to state down thereby grounding activities in the state.

The Nigeria Labour Congress (NLC) yesterday embarked on strike following the refusal of the government to rescind its decision over the 5 per cent increase on the tax deduction of workers.

All the 13 local government areas (LGAs) and 16 Development Areas (DAs) in the state also joined in the industrial action.

The state government had last week announced that with effect from January 2010 it would increase the tax deduction from 5 per cent to 10 per cent.

In a swift reaction, the NLC and the Union of Tertiary Institutions (UTI) in Nasarawa State had warned the state government to rescind its decision in 48 hours “in the interest of industrial peace and harmony” or risk facing an industrial action.

The unions, including the Trade Union Congress (TUC) and the Nigeria Union of Local Government Employees (NULGE), among others, made good their threat on Monday when they embarked on the strike.

In order to enforce the strike, the unions converged as early as 7:30am and picketed all the offices in the state.

They also forced drivers attached to government officials such as commissioners and special advisers out of their official vehicles insisting that government officials drive on their own.

While rejecting the new tax policy, which the state government introduced and is about to come into operation in the state this January, labour described it as “faulty”.

Earlier in its statement, the UTI had said “that based on the pamphlet of the Joint Tax Board Guidelines on PAYE (Pay As You Earn) as derived from the personal income Tax Act, 2004 LFN, Article 10, page 9, which explains the Rights of Objections and Appeal, the Unions therefore object totally to the implementation of the tax policy’.