The Nigeria Labour Congress (NLC) has called for an urgent and constructive dialogue with the Federal Government regarding the newly proposed Tax Reform Bill, citing potential adverse impacts on the nation’s workforce. NLC President, Joe Ajaero, made this call during the unveiling of CNG buses for the Union’s Southwest chapters in Ibadan over the weekend.
Ajaero highlighted critical concerns within the Bill, notably its provision for zero taxation on workers earning below N800,000 annually. He pointed out that a significant number of public sector employees earn above this threshold, raising doubts about the applicability of the proposed tax structure.
He elaborated, “If we consider a baseline of N70,000 per month, there are few workers, especially on Level 1, Step 1, who earn this amount. This implies that nearly all workers in Nigeria could be impacted by the proposed tax framework.” Ajaero stressed the necessity for clarity on these issues and urged for an open dialogue to address workers’ concerns effectively.
In support of the call for discussions, Professor Godwin Oyedokun, a tax expert from Lead City University, emphasized the need for tax reforms that do not burden those who are financially struggling. “Taxing poverty is counterproductive,” he stated, suggesting that the focus should be on taxing individuals with extravagant lifestyles who are better able to contribute to national development.
Professor Oyedokun also urged the NLC to seek negotiations with the government, cautioning against outright opposition to the reforms. He further recommended that tax reforms should address the informal sector and digital businesses to ensure a broader and fairer tax base.
The NLC’s plea for engagement highlights the growing concern among workers as the Bill continues to spark debate on its fairness and implications for Nigeria’s labor force.
Comments