LIVE UPDATES
The Trade Union Congress of Nigeria (TUC) has urged for a reassessment of certain aspects of the tax bills to benefit Nigerians.
TUC president Festus Osifo made this request in a statement on Tuesday after the National Executive Council meeting.
He stated, “The threshold for tax exemptions should be raised from the current N800,000 per year, as suggested in the bill, to N2,500,000 per year.”
He emphasized that this adjustment would alleviate the burdens faced by struggling Nigerians within that income range, thereby increasing their disposable income.
Osifo remarked that while the bill's signing collection to the Nigeria Revenue Service (NRS) seems advantageous at first glance, it could potentially lead to revenue losses for the government.
He noted, “Determining and reconciling royalties requires specialized technical knowledge in oil and gas operations, which the Nigerian Upstream Petroleum Regulatory Commission possesses, but NRS does not.”
Regarding the value-added tax (VAT), the labor leader expressed that maintaining the VAT rate at 7.5 percent is in the nation's best interest. He cautioned that raising it would impose an additional financial strain on Nigerians who are already grappling with economic difficulties. “At a time when inflation, unemployment, and living costs are escalating, increasing taxes would further burden households and businesses, potentially hindering economic growth and diminishing consumer purchasing power.”
“From a broader perspective, we appreciate the inclusion of the derivation component in the tax distribution among the three tiers of government. Once enacted and effectively implemented, it will promote productivity at the sub-national level, gradually transitioning us from a purely rent-seeking economy to a derivation-based system that will invigorate economic activities,” Osifo concluded.
