TUC Rejects VAT Increase Proposal
The Trade Union Congress (TUC) strongly opposes the Federal Government’s plan to raise the VAT rate, warning of increased economic hardships for Nigerians. The proposed Tax Reform Bills outline a phased VAT hike from 7.5% to 15% in coming years.
At a press conference in Abuja, TUC President Festus Osifo labeled the proposal as “ill-timed” and harmful to citizens already struggling with inflation and unemployment. Osifo urged the government to keep the VAT rate at 7.5% to protect households and businesses from financial strain.
Call for Higher Tax Exemption Threshold
To ease the burden on low-income earners, the TUC urged the government to raise the tax exemption threshold from ₦800,000 to ₦2.5 million annually. Osifo argued that such a move would boost disposable income, stimulate economic activity, and provide much-needed relief to struggling Nigerians.
“Increasing the tax exemption threshold is a practical way to alleviate economic pressure on citizens. It would empower low-income earners to cope with the challenges of rising costs,” Osifo stated.
Concerns Over Royalty Collection Transfer
The TUC criticized plans to transfer royalty collection from NUPRC to NRS, citing potential inefficiencies and revenue losses. Osifo cautioned that the NRS lacks the oil and gas expertise needed for accurate assessments and enforcement. He emphasized that NUPRC’s specialized knowledge is vital to avoid errors and maintain investor confidence.
Support for Key Institutions
Amid its criticisms, the TUC commended the government’s decision to retain vital institutions like the Tertiary Education Trust Fund and the National Agency for Science and Engineering Infrastructure. The union highlighted their importance in advancing education and technological development in Nigeria.
“These institutions play a crucial role in fostering innovation and improving the quality of tertiary education. Their continued support is essential for national progress,” Osifo emphasized.
A Plea for Citizen-Centric Reforms
Concluding the briefing, the TUC called on the Federal Government to implement tax policies that prioritize the welfare of Nigerians and promote equitable economic growth. Osifo reaffirmed the union’s commitment to advocating for reforms that enhance the living conditions of citizens.
“As discussions on the Tax Reform Bill progress, we urge the government to focus on fostering economic stability and improving the lives of all Nigerians,” he said.
The TUC’s stance underscores the urgent need for policies that balance fiscal responsibility with citizens’ well-being in Nigeria’s challenging economic climate.
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