Jul 31, 2020
Rent Increase “Palava” (Trouble)
Economist: My brilliant citizen, how are you doing today?
Brilliant Citizen: My Economist, things are getting better. I thank God! I am almost done learning the new skills… It should increase my market value very soon.
Economist: That’s great to know and how is work?
Brilliant Citizen: Work is ok, still working from home and few times I go to the office. At least, I can save some transport money. But haaa this working from home has caused landlords to want to increase rent ooo.
Economist: What do you mean by that?
Brilliant Citizen: My landlord sent me a notification, stating something like increase in rent based on a Federal Government instruction…He wants to increase it by 20%!
Economist: Which instruction? Let me check…. Oh, perhaps it’s the recently announced stamp duty on rent/lease. Remember when we spoke about Stamp Duties https://medium.com/@esthermoyin/stamp-duties-palava-212718cec2a5
Brilliant Citizen: Chai, so it is true that it is a Federal Government instruction. Haaaa, this Government will not suffer us more… How can we have to pay 20% more in this time and period? From where will we get the extra income, where do I move to ooo?
Economist: Hold on, which 20%? The directive is not a 20% increase. It is a maximum of 6% increase depending on the length of agreement. Here is the tenor and % specified by the Federal Government:
Brilliant Citizen: Ooh for real? So where did my landlord get 20% from. This landlord will not kill us oooo
Economist: You need to let him know that you won’t be paying any 20% increase. If your rent is for 1 year or 2 years, which most rents are for. You need to pay less than 1% extra!
Brilliant Citizen: But why should the Government introduce new tax this period, even if it is less than 1% (0.78%). Don’t we have enough problems and troubles this period? Life is not easy for the common man, Government needs to make things easier for people not harder.
Economist: You have a point there! Truly things are not as easy for the common man. Even for the government, revenue generation is hard! So, Government is trying to increase its revenue, so it can meet its obligations to the nation.
Brilliant Citizen: I know what you mean but we are already paying Personal Income Tax, VAT… plus many more! This government needs to take it easy and look for alternative ways to raise money. Otherwise, we will begin to think of ways to evade all these taxes.
Economist: I hear you. Please continue to learn your new skills and improve yourself. You will certainly earn more very soon.
Brilliant Citizen: Thank you my Economist, talk to you later.
Special thanks to Wale Olusi and Abraham Afariogun for their contributions to this article.
