NLC slams new tax regime, says FG ‘squeezing workers dry’

 

The Nigeria Labour Congress (NLC) has faulted the Federal Government’s newly introduced tax regime, accusing it of placing unbearable pressure on Nigerian workers without adequate consultation.

The labour centre said the government’s approach to taxation suggests a deliberate attempt to overburden workers, warning that the trend, if unchecked, could further impoverish citizens already grappling with economic hardship.

Speaking on Thursday during an interview on Arise Television, the Head of Information of the NLC, Mr. Benson Upah, said the government failed to engage organised labour before introducing the tax laws, despite workers being the largest contributors to the tax base.

According to him, meaningful consultation is a critical element of good governance and its absence often results in resistance and misunderstanding.

“We were not consulted before these tax laws were introduced, even though workers constitute the biggest taxpayer community in the country,” Upah said.

He disclosed that the NLC formally wrote to the government when the committee responsible for the tax reforms was being set up, but the request was ignored.

Upah also lamented the lack of public enlightenment on the new tax system, noting that workers have been left to rely on fragmented information from the media.

While government officials have claimed that low-income earners would be protected, the NLC spokesman argued that such assurances are misleading.

“In the formal sector today, considering the national minimum wage structure, virtually no worker earns below one million naira annually. So that exemption does not apply in reality,” he stated.

He further expressed concern that allowances previously exempted from taxation would now be taxed, in addition to other new tax obligations imposed on workers.

“The only thing workers may not be taxed for now is the oxygen they inhale and the carbon dioxide they exhale,” Upah remarked.

He urged the Federal Government to reopen dialogue with organised labour, stressing that lower taxes and efficient collection mechanisms would encourage compliance and foster trust.

“When taxes are reasonable and the process is transparent, citizens are more willing to comply,” he added.