The national president of Nigeria Labour Congress (NLC), Comrade Joe Ajaero, weekend advocated for dialogue with the government on the proposed Tax Reform Bills in the country.
Comrade Ajaero stated this in Ibadan during the Central Working Committee (CWC) meeting of the NLC and the launching of South-West Compressed Natural Gas Buses.
The NLC president pointed out that the dialogue became imperative to address some of the noticeable grey areas in the Tax Reforms Bills, adding that the they would lead to double taxation and indirect taxation which would affect all workers.
“There is need for collaboration with the government to straighten out some issues as spelt out in the bill. There is a section of the bill that stated zero taxation for workers earning below N800,000 per annum, but you and I know that in the public service, people have gone beyond maybe level 2 and 3.
“It then means that all workers in Nigeria will be affected because if we take a baseline of N70,000 per month which somebody is supposed to pay, there is nobody on level 1 step 1 that is N70,000, which means that no worker is exempted in the payment of taxes.
“That is the area that people are seeking clarification. What we are saying is that we need to talk so that we tell you where it is hurting us. 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 is pinching us. Unless you talk to the people who are at the background, who are on daily basis go out there to the street, you may be talking above them.
” When Taiwo Oyedele’s committee was set-up, we wrote the federal government and said you can’t 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.”
Frowning at what he called lack of consultation with NLC and other stakeholders in the formulation of the Tax Reform Bills, Comrade Ajaero said the proposed tax reforms will also exacerbate the tax burden on Nigerian worker, particularly those earning above ₦70, 000 monthly, saying, the proposed tax reform would lead to double taxation and indirect taxation which would affect all workers in Nigeria.
“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.
He stated that the current tax regime already imposes significant burdens on workers, with additional taxes on every day transactions, such as VAT and POS charges, adding that the taxes disproportionately affect low-income workers and the downtrodden.
Governor Seyi Makinde in his remarks at the programme said Oyo state government is ready to collaborate with the federal government to provide Compressed Natural Gas (CNG) buses for workers in the state.