Labour Matters

National Housing Fund tax is unprofitable, NASU tells FG

*workers are made to bear unbearable burden

By Appolos Christian

The Non-Academic Staff Union of Educational and Associated Institutions (NASU) has strongly expressed displeasure over what it considered ‘excessive and multiple taxation’ of its members by the Federal and State Governments.

NASU also said that the National Housing Fund tax is a fraud, and “an unprogressive tax that is unprofitable to the contributors and our union. Therefore, it has to be stopped.”

The Union went on to describe the Federal and State Governments as being insensitive to the plight of workers, because of what it tagged ‘a very unbearable burden that is too heavy to bear’, which is the multiple taxes they are forced to pay.

According to a press release jointly signed by its National President, General Secretary and Treasurer, Comarde Makolo Hassan, Mr Peters A. Adeyemi and Comrade Micheal U. Ukonyang, respectively, and made available to journalists in Abuja on Sunday, the Union listed the taxes in question to include; “income tax, value added tax, bank charges tax, communications tax as well as the National Housing Fund.”

The statement thus read; “The excessive and multiple taxation being imposed on members of the NonAcademic Staff Union of Educational and Associated Institutions (NASU) has become a very unbearable burden that is too heavy for our members to bear. These excessive and multiple taxes are being imposed by the Federal and State Governments without being sensitive to the plight of workers.

“These taxes include income tax, value added tax, bank charges tax. communications tax as well as the National Housing Fund. On several occasions, we have had cause to talk to the Governments about the negative effect of these taxes and their excessive nature on our members’ welfare.

“We regard the National Housing Fund as another form of tax imposed by the Federal Government on her employees; Under the extant National Housing Fund (NHF) Law (NHF 1992), every Nigerian earning N3,000 or more per annum is required to contribute 2.5% of their monthly basic salary to the NHF. The funds mobilised will be made available to contributors at affordable interest rates to build their home.

“The Fund which is mandatory for all Federal public servants, commenced in 1992 with the money deducted from source. On the enactment of the law, the Fund was based on basic salaries. However. with the consolidation of salaries, the deductions are now based on consolidated salaries. Unfortunately, not up to 10% of Federal public servants have been able to access the Fund. This situation has caused NASU members to rename the Fund as “National Housing Fraud”.

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