By Chibuike Nwabuko
ABUJA (PRECISE POST) – Chairman, Presidential Committee on Fiscal Policy and Tax Reform, Taiwo Oyedele has replied the Nigerian Labour Congress (NLC), insisted that the tax reform bills will benefit Nigerian workers.
Precise Post recalls that the NLC on Thursday, while commemorating the Workers Days, demanded among other things, the withdrawal of the Tax Reform Bills currently in the National Assembly.
The Organised Labour said “they stand united against the unjust Tax Bills that seek to bleed the working class dry. Stressing that the Bills crafted without their input, imposes heavy burdens on workers while letting the rich and corporations off the hook. It taxes our meager allowances-housing, transport, even medical benefits- while failing to ensure progressive taxation that makes the wealthy pay their fair share”.
It continued: “This is not just an attack on our wallets it is an attack on our dignity and survival in a time of crushing inflation and economic hardship.”
Ayodele, who replied when he took to his verified X account on Friday, outline some of the key provisions of the tax bills aimed at improving the welfare of workers.
He listed the provisions as follows:
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1) Full exemption for workers earning up to N1.3m p.a. (over N100k per month) representing not less than 35% of all workers in the private and public sectors from PAYE tax
2) Reduced PAYE tax for workers earning up to N20m p.a. (about N1.7m per month) benefiting additional 60% of all workers
3) Full PAYE tax exemption for members of the armed forces
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4) Zero (0%) VAT on food, healthcare, and education representing about 60% of all consumptions
5) VAT exemption on rent, transportation, renewable energy, CNG, baby products, sanitary towels, and fuel products representing over 20% of all consumptions
According to him, these items constitute an average of 82% of household consumption and nearly 100% for low income earners to cushion the impact of rising cost of living for workers.
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6) Tax break for wage awards and transport subsidy to low-income earners
7) Removal of restrictions and bureaucratic approvals for wage awards
8) Introduction of a cap on the amount that may be taxed as benefit in kind granted to workers
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9) VAT exemption on rent and acquisition of real property
10) Exemption of stamp duties on rent below N1m
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11) Tax incentives for employers to hire more workers
12) Friendly tax rules to attract international remote work opportunities for Nigerians
13) Tax exemption for 97% of SMEs earning annual turnover of N100m or less, harmonisation and reduction of corporate tax burden for large businesses to stimulate growth and create more employment opportunities for workers.
These changes deserve to be supported by everyone who seeks the well-being of Nigerian workers. We believe that the NLC and the TUC will not intentionally work against the interest of their members.
Happy belated workers’ day!
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