TUC Calls for Review of Items in Tax Reform Bills
The Trade Union Congress of Nigeria (TUC) has called for review of some items in the tax bills for the benefits of Nigerians. TUC President, Festus Osifo made the call in a statement on Tuesday following its National Executive Council meeting.
“The threshold for tax exemptions should be increased from the current N800,000 per annum, as proposed in the bill, to N2,500,000 per annum.
“This will provide relief to struggling Nigerians within that income bracket, easing the excruciating economic challenges being faced by increasing their disposable income.
“Also, the proposed bill assigning royalty collection to the Nigeria Revenue Service (NRS) appears beneficial on the surface, but would most likely result in significant revenue losses for the government.
“Royalty determination and reconciliation require specialised technical expertise in oil and gas operations, which Nigerian Upstream Petroleum Regulatory Commission possesses but NRS lacks,“he said.
On the Value Added Tax (VAT), the labour leader said that allowing VAT rate to remain at 7.5 per cent was in the best interest of the nation.
He said that increasing it would place an additional financial burden on Nigerians, many of whom were already struggling with economic challenges.
“At a time when inflation, unemployment, and cost of living are rising, imposing higher taxes would further strain households and businesses, potentially slowing economic growth and reducing consumer purchasing power.
“On a general perspective, we welcome the inclusion of derivation component in the TAX distribution among the three tiers of government.
“When passed into law and properly implemented, it will encourage productivity at the sub-national level thereby move us gradually from a total rent seeking economy to a derivation based system that will stimulate economic activities,” Osifo said. #TUC Calls for Review of Items in Tax Reform Bills#
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