Friday, May 2, 2025

Why Nigerian labour is against proposed tax bill – Osifo

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Ibrahim Ramalan
Ibrahim Ramalan
Ibrahim Ramalan is a graduate of Mass Communications from the Ahmadu Bello University (ABU) Zaria. With nearly a decade-long, active journalism practice, Mr Ramalan has been able to rise from a cub reporter to the exalted position of an editor; first as Arts Editor with the Blueprint Newspapers before resigning in 2019; second and presently as an Associate Editor of the Daily Nigerian online newspaper. He can be reached via ibroramalan@gmail.com, or www.facebook.com/ibrahim.ramalana, or @McRamalan on Twitter.
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tiamin rice
tiamin rice

The President, Trade Union Congress, TUC, Festus Osifo, says the organised labour is against the proposed tax bills by the Federal Government because it imposes heavy burdens on workers’s meager allowances.

Speaking during the 2025 May Day celebration in Abuja, Mr Osifo criticised the bills for “disproportionately targeting workers while sparing the wealthy and corporate elites”.

He expressed strong opposition to the bill by the Federal Government, describing it as “anti-worker”.

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“The tax proposals were drafted without the involvement of workers.

“They impose heavy burdens on our meager allowances —housing, transport, and even medical benefits, yet fail to promote a progressive taxation system that ensures the rich pay their fair share,” he said.

Specifically, Mr Osifo decried the plan to peg the minimum taxable income at N800,000 per annum, noting that the figure was only marginally below the newly agreed National Minimum Wage of N840,000 annually (N70,000 monthly).

“How can you tax someone earning, approximately the cost of just eight bags of 50kg rice in a year?

“This policy shows insensitivity to the plight of Nigerian workers amid soaring inflation and economic hardship,” he added.

He further criticised the proposed expansion of the Value Added Tax (VAT) on essential goods and the introduction of new levies, warning that such measures would escalate the cost of living and disproportionately affect the poor.

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The TUC president also highlighted the pressures faced by the informal sector, alleging that small-scale traders and artisans will be subjected to presumptive taxation and excessive compliance costs.

“We demand the immediate withdrawal of the anti-worker tax bill.

“Nigeria needs a fair and inclusive tax system, one that exempts essential goods from VAT and provides real support to the informal sector,” he said.

On electoral matters, Mr Osifo called for urgent reforms to address what he described as “a crisis of political legitimacy in Nigeria”.

He urged President Bola Tinubu and the National Assembly to initiate a broad-based and inclusive electoral reform process.

“This is not a partisan issue, but a patriotic duty.

“Stakeholders, including workers, civil society groups, political actors, and youths must come together to reshape our electoral system to ensure transparency, accountability, and genuine participation,” he said.

Mr Osifo stressed that credible elections are essential to building a just, equitable, and progressive society.

NAN

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