Tax Reforms Will Benefit Workers, Oyedele Reassures NLC

Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, has reassured Nigerians that the proposed tax bills will significantly enhance workers’ welfare. This comes after the Nigeria Labour Congress (NLC) expressed concerns over the potential impact of the reforms and insufficient stakeholder engagement.

The NLC recently urged the federal government to withdraw the tax bills under review by the national assembly, citing fears of adverse effects on workers.

Responding on Thursday via a post on X (formerly Twitter), Oyedele described the reforms as the most worker-friendly in Nigeria’s history. He highlighted key provisions aimed at improving welfare and addressing the NLC’s concerns:

• Lower Taxes for Workers:
  • Full exemption from PAYE tax for low-income earners earning up to ₦1 million annually (₦83,000 monthly), benefiting about one-third of workers.
  • Reduced PAYE tax rates for workers earning up to ₦20 million annually (₦1.7 million monthly), aiding an additional 60% of workers.
  • PAYE tax exemptions for armed forces personnel actively combating insecurity.
• Cost Reduction on Essentials:
  • Zero VAT on food, healthcare, and education, which make up 60% of consumption.
  • VAT exemptions on transportation, renewable energy, baby products, sanitary items, and fuel products, covering over 20% of household spending.
• Support for SMEs and Job Creation:
  • Tax exemptions for 97% of small and medium enterprises (SMEs).
  • Stamp duty exemptions on rents below ₦10 million.
  • Tax incentives for employers to generate more jobs.
  • Favorable tax rules to attract remote work opportunities for Nigerians.

Oyedele emphasized that these measures aim to ease the cost of living for workers, particularly low-income earners, while fostering job creation and economic growth.

He encouraged open debates and legislative reviews to refine the bills further, ensuring they align with the needs of all Nigerians. The tax committee, he assured, remains committed to addressing stakeholder concerns and improving the reforms.