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Tag: Trade Union Congress of Nigeria

  • TUC rejects 5% petroleum tax

    TUC rejects 5% petroleum tax

    The Trade Union Congress of Nigeria (TUC) has threatened to embark on a nationwide strike if the Federal Government fails to withdraw its proposed five per cent tax on petroleum products. This was contained in a statement jointly signed by the TUC President-General, Festus Osifo, and its General Secretary, Nuhu Toro, yesterday.

    The union described the policy as “economic wickedness” against the already overburdened citizens battling subsidy removal, soaring fuel prices, food inflation, and a weakening naira.

    “To now introduce another levy is to deliberately compound suffering, cripple businesses, and push millions of citizens deeper into poverty.

    “Nigerians cannot continue to be used as sacrificial lambs for economic experiments and the tax proposal is anti-people, unacceptable,” the union said.

    The union warned that failure to stop the policy would leave her with no option but to mobilise Nigerians and the masses for a total nationwide resistance.

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    “Strike action is firmly on the table if government dares to ignore this warning and go ahead to implement this policy,” it said.

    The TUC further directed all state councils, affiliates, and structures to remain vigilant and await further communication that could culminate in decisive action.

    The union further called on civil society groups, professional bodies, student unions, faith leaders, and market associations to join in solidarity against what it described as an unjust economic policy.

    “Enough is enough. Nigerians deserve economic justice, not endless punishment,” it said.

    Meanwhile, in another statement, the TUC also condemned alleged anti-labour practices, intimidation, and harassment of workers across Dangote Group companies.

    It would be recalled that NUPENG have accused Dangote companies of denying workers’ rights to unionize and assaulting their dignity through persistent intimidation.

    “We will not fold our arms while Dangote treats Nigerian workers as slaves in their own country. No employer, no matter how wealthy, will be allowed to trample on labour,” the statement said.

    The union therefore urged Dangote to address PENGASSAN and NUPENG’s complaints, and also to recognise the rights of all affected unions immediately and unconditionally.

    It said that failure to comply, would trigger nationwide solidarity action, with TUC and its affiliates standing shoulder-to-shoulder with the Nigeria Labour Congress (NLC).

    “This is not an appeal. It is a final warning. An injury to one is an injury to all. Touch PENGASSAN, CANMPSSAN, TGTSSAN, and NUPENG, you touch the entire labour movement,” it added.

  • TUC hails FG, govs for reaching agreement on tax reform bills 

    TUC hails FG, govs for reaching agreement on tax reform bills 

    …wants threshold for tax exemptions increased

    The Trade Union Congress of Nigeria has commended the federal government and the Governors Forum for reaching an agreement on the tax reform bills. 

    The labour group said it is glad that the agreement reached by both parties captured some of the concerns it raised last year. 

    In a statement by its president, Festus Osifo on Tuesday in Abuja, the TUC said: “We are indeed relieved that the agreement that was struck between the state governors and the federal government representatives captured two (The increment in VAT from the current 7.5% to 10%, 12.5% and finally to 15%; Tax exemptions limited to those earning 800,000 Naira per annum; The gradual defunding of TETFUND and NASENI;) of our concerns and clamour.

    “Allowing the Value Added Tax (VAT) rate to remain at 7.5% is in the best interest of the nation, as increasing it would place an additional financial burden on Nigerians, many of whom are already struggling with economic challenges. At a time when inflation, unemployment, and the cost of living are rising, imposing higher taxes would further strain households and businesses, potentially slowing economic growth and reducing consumer purchasing power.

    “It is also good to note that both TETFUND and NASENI will remain a going concern, as these institutions have greatly impacted the country through their respective mandates. Both have respectively been instrumental in improving our tertiary education and the adoption of homegrown technologies to enhance national productivity and self-reliance. Their continued existence is vital for sustaining progress in education, technology, and economic development across the country.

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    “On a general perspective, we welcome the inclusion of the derivation component in the Value Added Tax distribution amongst the three tiers of government. When passed into law and properly implemented, it will encourage productivity at the sub-national level thereby move us gradually from a total rent seeking economy to a derivation based system that will stimulate economic activities.”

    It however urged the government to review the threshold for tax exemptions and increase it from the current ₦800,000 per annum, as proposed in the bill, to ₦2,500,000 per annum.

    The congress also urged the Taiwo Oyedele -led Presidential Committee on Tax Policy and Fiscal Reforms to review the proposed bill assigning royalty collection to the Nigeria Revenue Service (NRS) and instead assign the task to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

    The statement added: “However, we still have two items that we strongly believe should be reviewed in the tax bills that will immensely benefit Nigerians.

    “i. The threshold for tax exemptions should be increased from the current ₦800,000 per annum, as proposed in the bill, to ₦2,500,000 per annum. This will provide relief to struggling Nigerians within that income bracket, easing the excruciating economic challenges they face by increasing their disposable income.

    “ii. The proposed bill assigning royalty collection to the Nigeria Revenue Service (NRS) appears beneficial on the surface but would most likely result in significant revenue losses for the government. Royalty determination and reconciliation require specialised technical expertise in oil and gas operations, which NUPRC possesses but NRS lacks, potentially leading to inaccurate assessments and enforcement issues. Additionally, this shift would create regulatory burdens, increase compliance costs for industry players, and reduce investor confidence due to overlapping functions and inefficiencies between NUPRC and NRS.

    “While we deeply appreciate the Federal Government’s efforts to listen and adjust to our advocacy, we still advocate that the above concerns be considered and adopted in the Tax Reform Bill, they will be highly beneficial to the Government and Nigerian populace.

    “The Trade Union Congress of Nigeria has a shared responsibility to promote policies that improve the lives of Nigerians amongst whom are workers. We believe that proactive measures when implemented are for the maximum good of the citizens and are evidence of great and sincere leadership. As the conversations around the Tax Reform Bill continue, it is our expectation that the focus would be equitable economic growth and improved living conditions for all Nigerians.”