The Nigeria Labour Congress, NLC, has warned that the combination of heavy taxation, low wages and rising national debt posed a serious threat to Nigeria’s economic and democratic stability. Consequently, it asked the federal government to urgently rethink the new tax laws and re-engage organised labour. NLC President, Joe Ajaero, issued the warning at the book launch and 85th birthday celebration of the founding President of the NLC, Hassan Summonu, where he accused the government of excluding workers and the poor from critical policy decisions that directly affected their lives.
On the new tax laws, Ajaero said: “The tax laws went through a process that clearly excluded Nigerian workers and the masses who are the major taxpayers in this country. From the Presidential Committee on Tax, Nigerian workers were deliberately excluded, and we warned the nation of the dangers. Today, the result is clear, laws with serious alterations directed at making workers and the poor poorer. Tax that taxes the national minimum wage is not fair. Tax that imposes heavy burdens on people living in excruciating poverty is regressive.”
Calling for a rethink, the NLC president said: “We do not see anything wrong in pausing along this negative path, rethinking and redirecting. The federal government must immediately and fully constitute the National Pension Commission PenCom’s Board and address the concerns of Nigerians on the tax law, instead of the present grandstanding. Insisting on going ahead amid confusion is like muddling along in darkness. This dangerous pattern undermines tax administration itself and indeed our democracy.”