Call it a case of the Devil giving you something with the right hand and taking it back with the left hand, you won’t be wrong.
That appears to be happening in many states across the country where state governors are alleged to have imposed excessive taxation on workers as part of the implementation of the N70, 000 new minimum wage.
Vanguard gathered that it was a barrage of complaints from all the six geo-political zones over excessive taxation imposed by governors on workers as part of the implementation of the new minimum wage during the recent National Executive Council, NEC, meeting of Nigeria Labour Congress, NLC, in Owerri, Imo State.
Recall that the Owerri NEC meeting held to roll out its South-East region’s Compressed Natural Gas, CNG, Bus Services and deliberate on critical issues including taxation, impacting Nigerian workers and the general populace, faulted the exclusion of Organised Labour from the taxation discourse
NLC in a communiqué issued by its President and General Secretary, Joe Ajaero and Emmanuel Ugboaja, respectively, said: “NLC emphasizes that the primary aim of taxation is to generate revenue for running the government. However, the justification of any tax system lies in its impact on the lives of the people. A fair and equitable tax system must prioritize fiscal discipline, transparency, and effectiveness in the use of tax funds to deliver tangible benefits to the citizenry.
“The NLC strongly asserts that discussions on taxation in a serious nation cannot exclude those who bear the brunt of the tax burden. The exclusion of organised labour in the formulation of the current Tax Bill is unacceptable and undermines the principles of tax justice. If labour is not at the table, it is effectively on the menu.
“The Congress demands that the Tax Bill currently before the National Assembly be halted for broader consultation and meaningful engagement with Nigerian workers. The politicisation of the Bill and alienation of key stakeholders is worrying and robs it of its capacity as an effective tool to revamp the economy and develop our nation. We must go back to this basic. Only through inclusive dialogue can we ensure a just and equitable tax system that benefits all citizens.”
According to a source at the NEC meeting, many state councils of NLC complained about over taxation since the commencement of the implementation of the new minimum wage.
One of the leaders of NLC in South-East lamented that “the little gains the viral inflation ravaging the country should have left out of the new minimum wage, the governors have taken it away through excessive taxation. The taxes have taken everything from the ordinary workers. And we have been left poorer.
One of the national leaders of NLC who spoke on the issue, told Vanguard that “these complaints informed the decision of NLC’ NEC during its meeting in Imo State, to call for a fair and equitable tax system based on fiscal discipline, transparency, and effectiveness in the use of tax funds to deliver tangible benefits to the citizenry.
The sad thing is that this complaint is not an isolated case. We received the complaint from all parts of the country. That is South- East, South-South, South-West, North-East, North-West and North- Central. It is only in Kogi that workers pressurized the governor and got a year tax relief.
It is saddening that despite the huge amount of money these governors receive monthly from the Federation Account as well as their internally generated revenue, IGR, they do not care about the welfare and wellbeing of the citizens, especially workers.
“As a follow up, NLC is organising a national dialogue on taxation. We are bringing in a professor who is an expert to dissert the Tax reform bills. After his presentation, members of NEC and Central Working Committee, CWC, will ask questions on how reform affects workers’ welfare and wellbeing. The dialogue is likely holding on Friday, January 10 in Ibadan, Oyo State. From the dialogue, we shall take our position on the tax reform bills to the National Assembly as workers’ position on taxation. We will also launch the South- West Compressed Natural Gas, CNG, Bus
