Talking Keke business with some rider today. This guy tells me they pay N1,500 in various taxes per day. That's around N33k/month (working days) and almost N400k/annum. I asked of the benefits he gets for those taxes, man says he doesn't know what Unions do with it. Insane.
More on Keke business. Man says the cost of a Keke was N650k prior to the lockdown but they get it at hire purchase for N1.1m. They have to remit N15k per week until full payment, which is around 73 weeks.
How much do these guys make monthly to be comfortable paying such taxes without benefits? Why don't they care about the so called fiscal social contract with Unions but demand for that with the FG?
I'm not sure what the arrangement is between the Unions and the governments or whether they remit. But it's certainly interesting. In one of the streets in my area alone, they have over 70 Kekes.
Even if they are remitting, imagine the leakages. People who probably pay more to Unions than the government expect social social services from the latter but don't care about the former's use of taxes. There's probably a lot I'm missing, so please share if you know more.
Las las, this is the so called informal sector that we can't tax. Tax to GDP is less than 6% but some people are cleaning out. Why have state governments given these Unions that much power?
Do you know what it means to be paying N400k/annum to Unions? Yo, still shook!!! Majority of the workers in the formal sector don't pay that much. I'll pick this up later.
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