The president of the Nigeria Labour Congress (NLC), Joe Ajaero, has stressed the need to address critical concerns within the Tax Reform Bill, given its implications on the workforce across the nation.
Speaking at the unveiling of CNG buses for the Southwest chapters of the Union in Ibadan at the weekend, Ajaero said the controversial Tax Reform Bill will continue to divide Nigerians until constructive dialogue is initiated by the federal government.
“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, 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,” Ajaero stated.
In his reaction, Professor Godwin Oyedokun, a tax expert from Lead City University Ibadan, acknowledged the importance of taxes in societal development but warned against imposing taxes on those who cannot afford to pay, a practice he termed “taxing poverty.”
He clarified that the new tax initiatives should focus on individuals with luxurious lifestyles, ensuring they contribute fairly to the system. He stressed the importance of reforming tax policies to capture revenue from informal sectors and digital businesses.
Professor Oyedokun 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.
