Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has lauded the proposed tax bills before the National Assembly, describing them as the most pro-workers reforms in Nigeria’s history.
Oyedele’s statement came in response to concerns raised by the Nigeria Labour Congress (NLC) over the welfare implications of the tax bills and the perceived lack of stakeholder involvement in their formulation.
On Wednesday, the NLC called on the federal government to withdraw the tax bills, citing their potential impact on citizens.
In a post on X (formerly Twitter) on Thursday, Oyedele highlighted the key provisions of the proposed reforms, asserting that they aim to improve workers’ welfare. “We welcome the interest of the Nigeria Labour Congress (NLC) on the Tax Reform Bills. We note the concern expressed about the likely impact on the welfare of Nigerian workers,” he wrote.
Oyedele outlined specific measures in the tax bills designed to enhance workers’ welfare:
Lower Personal Income Taxes
Full exemption from Pay-As-You-Earn (PAYE) tax for low-income earners earning up to N1 million annually (approximately N83,000 per month).
Reduced PAYE rates for workers earning up to N20 million annually (approximately N1.7 million per month), benefiting 60% of all workers.
PAYE tax exemption for members of the armed forces fighting insecurity.
Reduced Costs on Essential Goods and Services
Zero VAT on food, healthcare, and education, representing about 60% of all consumptions.
VAT exemptions on transportation, renewable energy, compressed natural gas (CNG), baby products, sanitary towels, and fuel products, constituting 20% of household expenses.
Support for Small Businesses and Employment Growth
Tax exemption for 97% of small and medium enterprises (SMEs).
Removal of stamp duties on rent agreements below N10 million.
Incentives for employers to create more job opportunities.
Tax policies to attract remote work opportunities for Nigerians.
Oyedele emphasized that the tax bills are open to further improvement through legislative debate and stakeholder engagement.
He expressed optimism about future discussions with labor groups and other stakeholders to refine the bills for the benefit of all Nigerians.
“We look forward to engaging further on specific areas for improvement to ensure the bills serve the interests of all Nigerians, including workers,” Oyedele stated.
The proposed reforms, according to Oyedele, are geared toward easing the economic burden on Nigerians, especially low-income earners, while stimulating economic growth and job creation.
As debates continue in the National Assembly, the dialogue between the NLC, the government, and other stakeholders remains crucial to achieving balanced tax reforms that address workers’ concerns.