‘How tax reform bills will benefit workers,’ Oyedele replies NLC

Mr Taiwo Oyedele, the Chairman, Presidential Committee on Fiscal Policy and Tax Reforms has said contrary to recent assertion by Joe Ajaero, the President of Nigeria Labour Congress, NLC, the tax reform bills presently before the National Assembly are pro-workers. Oyedele said this while reacting to a call by the NLC President that President Tinubu should withdraw the tax bills in his 2025 New Year message.

The NLC President had asked the President to withdraw the tax bill so that all key national stakeholders will be part of the process.

According to him, “NLC wants to join hands in co-creating a new national tax law that would enjoy wider acceptance and would fulfill its purpose of propelling national development which we believe is the main objective of government.”

However, while welcoming the interest of the NLC on the Tax Reform Bills, Oyedele dismissed the claims that they will have negative impacts of the welfare of Nigerian workers.

“While we recognise that the tax bills can be further improved through robust debates and engagements, which can take place as part of the ongoing legislative process, the bills in their current form are the most pro-workers tax reform in Nigerian history,” Oyedele said.

The Chairman, Presidential Committee on Fiscal Policy and Tax Reforms in a statement published on his X handle listed how the tax reform bill will lead to improvement of the welfare of Nigerian workers.

According to him, the implementation of the tax reform bill will lead to lower taxes that will enhance the disposable income of workers as they provided for full exemption of low-income earners up to N1m p.a. (about N83k per month) representing about one-third of all workers in the private and public sectors from PAYE tax while PAYE tax for workers earning up to N20m p.a. (about N1.7m per month) will also be reduced.

In the same vein, the reforms bill also made provision for exemption for members of the armed forces fighting insecurity in addition to other ranks from payment of PAYE tax.

Also, Oyedele said the tax reforms bills contain measures to reduce the cost of essential items with provisions for zero VAT on food, healthcare, and education representing about 60% of all consumptions, and VAT exemption on transportation, renewable energy, CNG, baby products, sanitary towels, and fuel products representing over 20% of all consumptions.

—PMNEWS

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