The Federal Government
of Nigeria has explained why lecturers have been receiving reduced salaries,
following the introduction of the Integrated Payroll and Personnel Information
System (IPPIS).
It was gathered that, lecturers
have complained about not receiving full pay in February, March and April.
The Accountant-General
of the Federation, Ahmed Idris, in a statement on Monday, said the IPPIS made
the “right deductions”.
Part of the statement
signed by director, information, press and public relations in the office of
the AGF, Henshaw Ogubike, read: “The Pay As You Earn (PAYE) Tax is a statutory
tax deductions paid by all salary earners. IPPIS applied the correct rate in
compliance with Section 34 of the 6th schedule on personal income tax
(Amendment) Act of 2011. Prior to migration to IPPIS, the rate of tax being
applied by tertiary institutions was not correct, leading to underpayment of
PAYE Tax.
It added that, “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.”
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