The Nigeria Labour Congress (NLC) has again called for the withdrawal of the tax reform bill until a public hearing is held or there is greater inclusivity in the tax committee before the bill is passed.
The Tax Reform Bill, which includes the Nigeria Tax Bill (NTB), Nigeria Tax Administration Bill (NTAB), Nigeria Revenue Service Establishment Bill (NRSEB), and the Joint Revenue Board Establishment Bill (JRBEB), aims to address inefficiencies, broaden the tax base, increase government revenue, and stimulate economic growth.
The Head of Information at the NLC, Benson Upah, stated on Wednesday that past experiences with agreements and dialogues with the federal government have taught the union to be cautious.
He argued that the tax reform bill is targeted at extorting Nigerian workers across all sectors of the economy.
In an interview monitored by NewsNGR, Upah acknowledged that taxation plays a critical role in a country’s development. However, he emphasized that while the reforms are intended to boost revenue generation, there are consequences that must be anticipated and addressed.
Upah said, “On the issue of the tax reform bill, specifically concerning workers, the bill claims it will shield low-income workers from the impact of taxes.
“People earning less than N1m, I am afraid to say, there is hardly any worker in the formal sector earning less than N1m. So, that benefit exists only in principle.
“The second claim, that linking taxes to social security benefits will be beneficial to workers, is, I must add, a mirage, given our experiences from the past.
“But aside from this, these proposed tax reform bills, as they affect workers, will tax workers’ benefits, allowances, housing, and more.
“This will severely impact Nigerian workers because, generally speaking, what they earn at the moment is nothing to write home about.”
He reiterated that taxing workers’ allowances and other benefits would make them poorer.
He also warned that the reforms, which seek to tax informal workers—whom he referred to as “endangered species in the economic structure of Nigeria”—would further worsen the already existing hardship.
He said, “The informal sector has no access to credit, insurance, or markets, among other things. Even when they create the retreat of the vanquished, they are permanently under torment by agents of the state who chase and seize their items while refusing them free access to operate. This is what can be expected from the bill.”
Speaking on NLC’s expectations regarding the tax reform bill, Upah urged the National Assembly to work effectively and diligently. He emphasized that a thorough public hearing—one that is not teleguided—must be held.
He further revealed that, in the lead-up to the tax reforms, the NLC was not consulted
Upah warned that unless there is a serious, well-thought-out consultation, the NLC will continue to “resist the tax reforms,” no matter how well-intended they may be.