Kehinde Fajobi
The Nigeria Labour Congress (NLC) has urged the Federal Government to engage in constructive dialogue over the Tax Reform Bill, expressing concerns about its impact on workers nationwide.
Speaking at the unveiling of CNG buses for the union’s Southwest chapters in Ibadan over the weekend, NLC President Joe Ajaero highlighted the need to address key issues within the bill.
“Collaboration with the government is essential to clarify and resolve certain issues outlined in the Bill,” Ajaero said.
“For instance, the Bill proposes zero taxation for workers earning below ₦800,000 annually. However, it’s important to note that many in the public service earn above the levels that fall under this threshold.”
He added, “If we consider a baseline of ₦70,000 per month, there are hardly any workers on Level 1, Step 1 who earn 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.”
Professor Godwin Oyedokun, a tax expert from Lead City University Ibadan, echoed these concerns.
While acknowledging the role of taxes in societal development, he warned against imposing taxes on those who cannot afford them, describing the practice as “taxing poverty.”
He suggested that the reforms should target individuals with luxurious lifestyles to ensure fairness and emphasised capturing revenue from informal sectors and digital businesses.
Professor Oyedokun advised the NLC to engage in constructive negotiations with the government, suggesting that outright resistance could be perceived as self-interest.
In a related event, Governor Seyi Makinde unveiled CNG buses donated to the NLC by the Federal Government.
Represented by his deputy, Barrister Bayo Lawal, the governor stressed the importance of enhanced cooperation between the government and the union to address pressing issues effectively.