OAGF refutes ASUU’S claim on salary reduction
...says Union’s request to formalise tax evasion through IPPIS untenable, unpatriotic
Office of the Accountant General of the Federation (OAGF) has refuted claims on salary deduction claims by tertiary institutions unions, led by the Academic Staff Union of Universities (ASUU), calling such cheap propaganda aimed to denigrate Integrated Payroll and Personnel Information System (IPPIS).
The OAGF in a statement signed by Henshaw Ogubike, director, information, press and public relations, on Monday, explained that IPPIS applied the correct rate in compliance with Section 34 of the 6th schedule on personal income tax (Amendment) Act of 2011, adding that prior to migration to IPPIS, the rate of tax being applied by tertiary institutions was not correct, leading to underpayment of PAYE Tax.
“It is important to note that all states governments of the federation made claims on the federal government to pay the differential arising from underpayment of tax by these institutions.
“The Federal Government has paid several billions on behalf of these institutions because of their underpayment of PAYE Tax. The request by the tertiary institution unions to formalize tax evasion through IPPIS is not only untenable, but unpatriotic request to violate extant laws on tax,”according to the statement.
Addressing the National Housing Fund (NHF) deductions, he explained that the NHF, which is a statutory saving contribution by all federal employees to enable them have access to short life loans to own their personal houses represented 2.5 percent of basic salary.
He said: “ASUU is bringing claims that those laws should not be applicable to them and thereby should be exempted or be made optional for them. The request for breach of Act of Parliament is not within the ambit of the IPPIS or the OAGF.
“Another issue raised by the unions is the Employees’ Pension Contribution deductions of 7.5 percent, the ASUU claim that the Employee Contributory Pension should be based on basic salary and not on consolidated salary and it has increased their employee deductions thereby reducing their take home.