The Trades Union Congress (TUC) has commended the Federal Government for making crucial adjustments to the Nigerian Tax Reform Bill, signaling progress in addressing the concerns of Nigerian workers and citizens.
In a press statement by its President, Comrade Festus Osifo, on Tuesday, made available to journalists in Abuja, the TUC expressed cautious optimism about the revisions, particularly the decision to maintain the Value Added Tax rate (VAT) at 7.5% and preserve the mandates of vital institutions such as the Tertiary Education Trust Fund (TETFUND) and the National Agency for Science and Engineering Infrastructure (NASENI).
Osifo, in the statement, described these measures as important steps to protect Nigerians from further economic hardship.
Congress said keeping the VAT rate at its current level was a crucial victory, protecting households and businesses from additional financial strain amid rising inflation and unemployment.
This decision, the TUC noted, aligns with the urgent need to encourage economic growth rather than impede it.
Equally applauded was the decision to maintain TETFUND and NASENI, two institutions considered pillars of national development. TETFUND has been instrumental in advancing tertiary education, while NASENI has driven local technological innovation.
The TUC emphasized that these institutions are vital to fostering self-reliance, improving productivity and ensuring long-term national progress.
Despite these developments, the TUC expressed concern about unresolved aspects of the Tax Reform Bill that require immediate attention.
Chief among their concerns is the need to increase the annual tax exemption threshold from £800,000 to £2.5m. Comrade Osifo emphasized that this adjustment is necessary to alleviate economic pressure on struggling Nigerians, allowing for greater disposable income and a modest respite from the current challenges posed by inflation and high costs of living.
Another point of contention is the proposed transfer of oil and gas royalty collections from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to the Nigerian Revenue Service (NRS).
The TUC argued that this change could have detrimental effects, citing the NRS' lack of technical expertise to handle such specialist assessments. Congress warned that this change could lead to significant revenue losses, higher compliance costs and reduced investor confidence in Nigeria's oil and gas sector.
Amid these discussions, the inclusion of a derivation component in the distribution of VAT has been welcomed as a positive step towards stimulating economic activity at the subnational level. The TUC hailed this development as a transition from a rentier model to one that encourages productivity and growth at all levels of government.
As talks on the tax reform bill progress, the TUC called on the government to demonstrate a commitment to equity, economic stability and improving the standard of living of all Nigerians. Congress emphasized the importance of policies that reflect visionary leadership and sincere dedication to the well-being of the people.
The Trades Union Congress reaffirmed its resolve to advocate for reforms that promote justice, promote economic resilience and ensure prosperity for both workers and citizens of Nigeria.