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Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) said on Monday it would resist plan by the government at both the federal and state levels to impose tax on pensions, gratuities and terminal benefits of workers.
PENGASSAN in a communiqué issued at the end of its National Executive Council (NEC) meeting in Uyo, Akwa Ibom State, condemned what it called “unilateral decision by the Federal Inland Revenue Service (FIRS) and states’ Internal Revenue Services to act outside the provisions of the federal tax laws thereby infringing on the rights of the workers.
The union, in the communiqué signed by Francis Johnson and Lumumba Okugbawa, president and general secretary, respectively, condemned the plan by government, especially the Lagos State government and its agent, the Lagos State Inland Revenue Service (LIRS), to tax workers’ gratuities and terminal benefits.
The union noted that the planned taxation would further deplete workers’ final entitlements and increase poverty in the country, as this could also shorten the lifespan of workers in the country.
The union called on all workers, the Nigeria Labour Congress (NLC), the Trade Union Congress of Nigeria (TUC) and other labour unions to reject and resist the planned taxation of pensions, gratuities and terminal benefits.
