Doctors at the Lagos state University Teaching Hospital (LUTH), Idi-Araba, on Tuesday commenced a three-day warning strike over alleged abnormal tax deductions from their salaries.
DailyPost gathered that doctors under the Association of Resident Doctors’ umbrella alleged that LUTH management had been deducting huge amount from their monthly salaries as tax.
Speaking on the condition of anonymity, an executive member of the association affirmed that executives of the association had held series of meetings with the management requesting for a detailed explanation and the need to stop the abnormal deduction, noting that it yielded no result.
“There was a new tax regime in which over 20 per cent was being deducted monthly from our salaries as tax, which is quite a lot of money.
“We have met with the management severally but they told us it was not a LUTH management decision and that it was a Federal Government Tax Law.
“We decided to channel our demands through the strike just to send a message to the management that we are not comfortable with the abnormal tax deduction,” he said.
He however ascertained that the warning strike would be suspended on Thursday, after which the situation would be reviewed.
Confirming the development, LUTH Chief Medical Director,Prof. Akin Osibogun, said that the tax deduction was in accordance with the new income tax law.
He said, “People need to be properly educated on tax payment and adapt to it as obtained in western countries.
“Tax is an annual payment and the institution must complete payment before the end of the year to avoid penalty.”
Prof. Osibogun explained that tax deductions were usually made in January and if not fully deducted, it would be deducted in full before the end of December.
“As an institution, we cannot afford to breach the law, if there is a tax law, we have to implement the law.
“We are having talks with the union, looking at all the details they gave and seeing whether everything is in accordance with the tax law.
“We are also discussing with the Lagos State Tax Office just to be sure that we are in compliance with the tax law of Nigeria,” Osibogun concluded.
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