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The Nigeria Labour Congress (NLC) asserts that the Federal Government is making every possible effort to burden Nigerian workers, emphasizing that if it were feasible, it might even impose taxes on the air they breathe.

Benson Upah, the head of information for the NLC, made this remark on Thursday during an interview on Arise Television, which was monitored by DAILY POST.

He expressed opposition to the new tax system introduced by the Federal Government.

“First and foremost, consultative engagement is essential for effective governance.
When this is lacking, disagreements are bound to arise. In this case, we are asserting that we were not consulted prior to the implementation of these tax laws, despite being the largest taxpayer community in the country.
“In fact, we reached out to the government when the committee was being formed, but our input was disregarded. Since this law has been enacted, no initiative has been taken to provide public awareness or educate our members.
“The implications for them are concerning; what we hear in the media are claims of benefits, but there is only one benefit mentioned: that people earning below a million will not be taxable. However, I must point out that in the formal sector today, given the current national minimum wage, no one earns below 1 million, so this exemption does not apply.

“Previously, workers' allowances were not subject to taxation. Now, those same allowances will be taxed, in addition to all other newly introduced tax liabilities. The only thing they might currently be exempt from taxing is the oxygen we inhale and the carbon dioxide they exhale.

“There is a pressing need for back-channel communication with the government. When taxes are lower and collection methods are more efficient, greater compliance from citizens will follow,” he stated.

FAQs

What is the Nigeria Labour Congress's position on the new tax system?

The NLC opposes the new tax system, claiming it burdens workers without proper consultation and emphasizes the need for more engagement from the government.

Are workers' allowances now taxable?

Yes, the NLC states that previously untaxed workers' allowances will now be subject to taxation under the new system.

What does the NLC suggest for better tax compliance?

The NLC suggests that effective communication and lower taxes, alongside efficient collection methods, will lead to better compliance among citizens.

Eze Chidiebere Paul

Eze Chidiebere Paul

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