FG Urged To Increase Education Tax From 2.5% To 10% To Fix Infrastructure In Schools
The Academic Staff Union of Universities (ASUU), has asked the federal government to increase the education tax from 2.5 per cent to 10 per cent to fix the infrastructure deficit in the country’s tertiary institutions.
ASUU President, Emmanuel Osodeke, gave the advice in Abuja on Thursday, during the unveiling of 50 books published by Nigerian authors and sponsored by the Tertiary Education Trust Fund (TETFund).
According to Osedeke, an increase in education tax would empower TETFund more to address infrastructure deficit in tertiary institutions across the country.
He said, “Everyone knows that what is happening in most tertiary institutions is through the instrumentality of TETFund. So, increasing TETFund funding will go a long way in achieving that, whether we can go to 10 per cent currently is a conversation that will be held somewhere else”.
The education tax is regulated by the Tertiary Education Trust Fund Act of 2011.
The act imposes a two per cent tax on the assessable profits of all companies in Nigeria.
Funds derived from the tax are used for rehabilitation, restoration, and consolidation of tertiary education in the country by TETFund.
The ASUU president commended President Muhammadu Buhari’s administration for raising the education tax from two per cent to three per cent.
“I am aware the current administration has done a lot in this regard. Mr President in just two years has taken two bold steps,” he said.
“I know there is a degree of pushback from industries, from NECA about the issue of multiple taxations and the difficult operating environment, but seeing how important education is to national development, this president on two occasions; last year it was increased from 2 to 2.5 per cent and in the current Finance Bill, Mr President has ensured that it is increased to 3 per cent.”
“I don’t want to preempt until it is signed, but that shows the commitment of the president that wants to leave a legacy.”
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