Tax reform bill to benefit 90% of Nigerian workers – Oyedele to NLC

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has reassured the Nigeria Labour Congress (NLC) that the proposed bills prioritize the welfare of workers.

According to reports, the NLC had called for the withdrawal of the bills from the National Assembly to allow for further consultation.

Addressing the concerns, Oyedele, in a statement on his X (formerly Twitter) account on Thursday, emphasized that the bills offer significant benefits for workers.

“We welcome the interest of the Nigeria Labour Congress (NLC) on the Tax Reform Bills. We note the concern expressed about the likely impact on the welfare of Nigerian workers,” he said.

According to him, Nigeria workers earning below ₦1 million per annum (₦83,000 per month) would benefit from low taxes.

“Lower taxes to enhance the disposable income of workers. Full exemption of low-income earners up to ₦1m p.a. (about ₦83k per month) representing about one-third of all workers in the private and public sectors from PAYE tax.

“Reduced PAYE tax for workers earning up to ₦20m p.a. (about ₦1.7m per month) benefiting additional 60% of all workers. PAYE tax exemption for members of the armed forces fighting insecurity in addition to other ranks,” he stated.

Oyedele called on NLC to support the bill. He emphasized that the Tax Reform Bill remained the most pro-workers tax reform in the country’s history.

“While we recognize that the tax bills can be further improved through robust debates and engagements, which can take place as part of the ongoing legislative process, the bills in their current form are the most pro-workers tax reform in Nigerian history.

“We believe that the NLC will not intentionally work against the interest of its members. We therefore look forward to the opportunity to discuss specific areas for improvement in the bills to better serve the interest of all Nigerians including workers,” he added.