NLC Rejects Tax Reform Bills, Demand Inclusive Policy-making, Transparency

… As Labour Union Kicks Against Double Taxation in Proposed Tax Reforms

… As Comrade Ajaero, Says Proposed Tax Reforms Will Worsen Worker’s Plight

The National President of Nigeria Labour Congress, Comrade Joe Ajaero has criticized the lack of consultation with NLC and other stakeholders in the formulation of the Tax Reform Bills saying that the bills would exacerbate the tax burden on Nigerian worker, particularly those earning above ₦70, 000 monthly.

The Labour President stated this at the Central Working Committee Meeting of the Nigeria Labour Congress and the Launching of South-West Compressed Natural Gas Buses held in Ibadan, Oyo state.

Speaking with Journalist, The National President Nigeria Labour Congress, Comrade Joe Ajaero argued that the proposed tax reform would lead to double taxation and indirect taxation which would affect all workers in Niger.

He noted that the current tax regime already imposes significant burdens on workers, with additional taxes on every day transactions, such as VAT and POS charges stresses that the taxes disproportionately affect low-income workers and the downtrodden.

Comrade Ajaero recalled that when the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele, was established, the NLC wrote to the federal government expressing concerns about the potential impact on workers.

He further questioned why the committee’s recommendation were presented without adequate input from the NLC and other stakeholders.

The NLC President called for a national dialogue on the Tax Reform Bills, emphasizing the need for transparency, honesty, and inclusivity in policy-making.

He argued that workers’ welfare should be the primary consideration in any policy decision, and that the proposed tax reforms would ultimately make workers poorer.

Comrade Ajaero stated that “People are being more enlightened, though with our own knowledge on Tax and Tax justices.

“We are going back to the session for us to articulate a more uniform position in the interest of Nigeria workers especially as it affects avoiding double taxation and indirect taxation.

“We are better informed more informed and more agitated.

“If there were four, five taxes, it had increased, what was done was as a policy they now added them and according to him they Chapterize it and introduce new ones.

“At the end of the day, you haveore to pay besides and that is central it is the fact that whe they talk about may be people earning about ₦800 and you and I know that in the public service people have come beyond may be level 2,3 that means that all workers in Nigeria would be affected because if you take a base line of ₦70,000 per month which is not all is going to take but there is nobody on level one, step one that is ₦70, 000 by the time you get to where people are, every body has been cut-off with the Eight hundred or One Million bracket, so this tax did not exclude Nigerian workers.

“That is area that if we have been consulted and we are saying that we need to talk, do that we tell you where is hurting us.

“That equally bring us to indirect taxation, where if you by product VAT or if you get to POS to transfer or get money you pay ₦300.

“Especially we in an era where the Central Bank is deliberately withholding cash and people have to even pay some amounts in order to access cash and who are the people suffering this, they are workers and the down trodden.

“If you are buying a plantain on the road, that person doesn’t have an account, so he need cash to access it, so if you go to POS to buy and they charge you ₦300 whatever, you know that this tax regime does it exclude anybody.

“We are calling for dialogue so that we make our own input on the tax reform negotiations.

“As practitioners we are the people on the ground and we know where it pinching us, unless you talked to the people who are at the background, who are on daily basis go out there to the street, you may talking above them.

“It is not sensitive that the workers would benefit more, when taiwo Oyedele’s committee was set-up we wrote the federal government and said that you can shave our heads in our absence, so he can’t tell us how we will benefit to that extent, so if he is sure that we are going to benefit from it, why is he avoiding us.

“We have some little knowledge about this tax policy that we are going to bring to the table.

“So this policy will make workers poorer, he said.

In his remark, Oyo State Governor, Engr. Seyi Makinde, who was represented by the deputy governor, Barr. Adebayo Lawal, pledged the state’s collaboration with the federal government to provide Compressed Natural Gas (CNG) buses for wokers in the state.

According to Lawal, the Oyo state government has been proactive in addressing the transportation needs of its workers noting that the state already has an agency dedicated to providing transportation services, with at least ten luxurious buses operating free of charge.

He appealed for more buses to be deployed to the South-West region, particularly Oyo state, to improve coverage and reduce travel time which he believes, will greatly benefit workers and the masses.

In his lecture Titled “Dialogue On “Tax Reform Bill” the guest lecturer Prof. Godwin Oyedokun, professor of Accounting and Financial Development, Leed City University, Ibadan, urged the Nigeria Labour Congress (NLC) to scrutinize the proposed Personal Income Tax rate emphasizing that the NLC just carefully analyze the implications of the new tax rate on workers’ salaries, ensuring they understand the mathematical calculations involved.

According to Oyedokun, the proposed tax rate is an improvement over the current system, but there’s still room for enhancement.

He encouraged the Labour Union to revisit their strategies, focusing on how the tax reforms affect workers, and to advocate for benefits in-kind to be exempt from taxable income.

Oyedokun also cautioned the NLC to adopt a peaceful and strategic approach to activism, utilizing their resources effectively without disrupting national peace.

He stressed that delaying the passage of the tax reforms would only perpetuate the outdated syste, which is detrimental to worker’s interests.

Oyedokun noted that “NLC have the responsibility to quickly sit down and check the personal income tax rate and to ensure that they put mathematics together to ensure that they practicalise it with certain amount of money in terms of salary of some of their worker and see the implication.

“What is currently being used is not the same thing as what us been proposed by the federal government, what is been proposed is better than what is currently been use.

“However, it can be better than that, I charge the NLC to go back to their drawing board put things together to actually check this as it affects workers and restrict their scope to what the mandate they have on what they supposed to doing and by so doing.

“I also charged them that they should look at some allowances, some benefits in kind that would be taxable, if they can make case, so far this government is saying they have the interest of populace low income earners at hand then they should see how such benefits in kind can be remove from taxable income to non-taxable income legitimately.

“So if they can do that of course they will have better deal.

“I also said that in terms of activism that they should not do it in a manner that would make it to be drag, go with demand, ensure you use all your apparatus without disturbing the peace of the country to get it done.

“However, the more we delay passage of this, whatever the amendment, the more we would continue to pay old one, old one is not better.

In his address, The Chairman Oyo state Council, Nigeria Labour Congress, Comrade Kayode Martin who spoke on behalf of all the South-West Chairperson said that removal of Fuel Subsidy has placed a significant burden on workers and the masses, and believes the government has not been sincere in its approach.

He expressed skepticism about the government’s claims that the policy will benefit the people, citing past experiences where policies have only added to the burden on the masses.

Comrade Martin noted that in Oyo state, the NLC is also grappling with the issue of PAYE (Pay As You Earn) introduced by the state government, and cautious ensuring that the policy genuinely benefits workers and does not not amount to giving with one hand and taking with the other.

The chairman called on the government and stakeholders to enhance the transportation system in the state, and willing to partner with the government to ensure the vehicles are well-maintained and benefit all.

He said that “Immediately subsidy was pronounced removed by President Tinubu, the president did not put anything on the table.

“It was when the labour movement in the country approached him and gave him some ideas, that was when the issues of CNG buses came to be.

“I was told that in a particular state, immediately when the buses was given to them, the governor of that state promised to add to it.

“This is just a starting point, we want to beckon on the government and all the stakeholders in the state that whatever they can do just to enhance the transportation system in the state for workers, we are ready to partner with them and we promise that this vehicles will be well maintain and is going to be for the benefit of all.

“The burden laid on workers and the entire masses as per subsidy removal since Lady year is enormous and the area of transportation this vehicles will help at a particular levels.

“The government at the federal level have not been sincere enough.

“The body language from the federal government we might be experiences some phobia.

“We have to study it in details, they have told us is going to benefit us but once bitten twice shy but most of their policy not releasing the burden on the masses, we can trust them.

“Like what the speaker said trying to encourage us and elaborate the whole thing to us.

“I wouldn’t know if the workers here in Oyo state, we have the issue of PAYE introduce by the state government which we are still on that, looking at is really going to benefit us, so that it wouldn’t amount to given us money with right or taken it the left hand, he said.

At the end of the event, The Nigeria Labour Congress President, Comrade Joe Ajaero with other members of the Labour Congress and with the Deputy governor of Oyo State, Barr. Adebayo Lawal Commissioned the Ten buses for Five South-West state’s which includes; Oyo, Ogun, Osun, Ondo, and Ekiti States.