Address tax reform concerns – NLC tells Government

Monday, January 13, 2025 - The Nigeria Labour Congress, NLC, has called for constructive dialogue with the Federal Government regarding the Tax Reform Bill, especially its implications for the workforce across the nation.

NLC President, Joe Ajaero, made this call at the weekend during the unveiling of CNG buses for the Southwest chapters of the Union in Ibadan

Ajaero stressed the urgency of addressing critical concerns within the Bill.

“Collaboration with the government is essential to clarify and resolve certain issues outlined in the Bill. For instance, the Bill proposes zero taxation for workers earning below N800,000 annually.

“However, it’s important to note that many in the public service earn above the levels that fall under this threshold.

“If we consider a baseline of N70,000 per month, there are hardly any worker on Level 1, Step 1 who earns this amount. This suggests that virtually all workers in Nigeria could be affected by the proposed tax structure. We need clarity on these matters, and a dialogue is necessary to highlight where the concerns lie,” Ajaero stated.

Contributing to the discussion, a tax expert from Lead City University Ibadan, Professor Godwin Oyedokun, acknowledged the importance of taxes in societal development, warning against imposing taxes on those who cannot afford to pay, a practice he termed taxing poverty.

According to him, the new tax initiatives should focus on individuals with luxurious lifestyles, ensuring they contribute fairly to the system.

He underscored the significance of reforming tax policies to capture revenue from informal sectors and digital businesses.

The tax expert also encouraged the NLC to pursue constructive negotiations with the government, rather than outright opposition to the reforms, suggesting that resistance might stem from self-interest.