In a bold stance against the federal government, the Nigeria Labour Congress (NLC) has demanded the withdrawal of the proposed tax reform bills, warning that these measures could worsen the economic challenges faced by Nigerians.
Speaking on the issue, NLC President Joe Ajaero raised concerns about the devastating implications of the reforms, particularly for low-income earners and already disadvantaged regions. The labor leader cautioned that the bills, if enacted, might deepen inequality and leave many struggling to make ends meet.
The tax reform bills, introduced as part of President Bola Tinubu’s broader economic agenda, aim to reshape Nigeria’s tax system to increase government revenue. However, one of the most controversial elements involves changes to the distribution of Value Added Tax (VAT) revenues. Under the proposed arrangement, states generating higher VAT would receive more funds, while allocations to less economically active states, particularly in the northern region, would decrease.
This shift has sparked outcry from northern governors and leaders, who argue that it could aggravate poverty and economic disparity in the region. Gombe State Governor and chairman of the Northern Governors Forum, Inuwa Yahaya, described the proposal as a potential threat to the wellbeing of northern citizens. He pointed out that the region already faces significant economic struggles, and the reforms could further marginalize the north.
Despite these objections, Senate President Godswill Akpabio remains optimistic about the bills’ passage, given his close ties to the administration. Critics, however, have questioned the pace and inclusiveness of the reform process, arguing that more consultations with stakeholders are necessary. Waziri Adio, the executive director of Agora Policy, stressed the importance of comprehensive engagement to ensure that reforms accurately reflect Nigeria’s complex economic realities.
The NLC is urging the government to rethink these proposals and adopt a more inclusive approach. They emphasized that any tax reforms must prioritize fairness and avoid placing undue burdens on the most vulnerable populations.
Stay tuned to NIGPOST for further updates on this developing story.
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