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NLC canvasses for “constructive” national dialogue on Tax Reform Bills stalemated in NASS

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NLC canvasses for “constructive” national dialogue on bills stalled by Northern opposition

By Jeph Ajobaju, Chief Copy Editor

A constructive national dialogue with Abuja on the Tax Reform Bills, particularly the implications for workers, is the best way to move forward on the initiative that has split the country down the middle – caused largely by Northern opposition to it – the Nigeria Labour Congress (NLC) has stressed.

NLC President Joe Ajaero made the point at the unveiling of CNG buses for the NLC South West chapters at the weekend in Ibadan where he circled the urgency of addressing critical concerns in the bills.

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“Collaboration with the government is essential to clarify and resolve certain issues outlined in the bill. For instance, the bill proposes zero taxation for workers earning below N800,000 annually.

“However, it’s important to note that many in the public service earn above the levels that fall under this threshold,” he said.

“If we consider a baseline of N70,000 per month, there are hardly any worker on Level 1, Step 1 who earns this amount [N800,000 per annum]. This suggests that virtually all workers in Nigeria could be affected by the proposed tax structure.

“We need clarity on these matters, and a dialogue is necessary to highlight where the concerns lie.”

Adding his voice to the discussion, Professor Godwin Oyedokun, a tax expert at Lead City University Ibadan, acknowledged the importance of taxes in societal development, but warned against imposing taxes on those who cannot afford to pay, which he terms “taxing poverty”.

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Oyedokun insisted that the new tax plan should focus on individuals with luxurious lifestyles, ensuring they contribute fairly to the system.

He also stressed the importance of reforming tax policies to capture revenue from informal sectors and digital businesses.

Oyedokun encouraged the NLC to pursue constructive negotiations with the government, rather than outright opposition to the reforms, suggesting that resistance may stem from self-interest.

Oyo Governor Seyi Makinde, represented by his Deputy Bayo Lawal, unveiled the CNG buses which were donated to the NLC by the federal government.

He stressed the need for enhanced collaboration between the government and Labour.

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