The Nigerian Trade Union Congress, TUC, has called on the federal government to exempt low-income workers, especially workers earning N50,000 and less, from income tax.
The TUC, during a presentation at the Senate Committee hearing on the 2021 Finance Law, also argued that there should be a reduction in the tax on electronic money transfers from N50 to N10 in reason for multiple taxation.
Presenting the position of the TUC, its chairman, Quadri Olaleye said that âas it stands, efforts should be focused on economic development and on how to save the few jobs available, and not impose on organizations and to workers multiple taxes and other inhibitions that choke businesses. There should be a reduction in the e-money transfer levy from N50 to N10 due to several taxes. The levy should only affect the transfer of N50,000.00 or more and the 15 percent federal and 85 percent state split formula should be maintained. “
Regarding the PAYE / Personal Income Tax, he said that âany person or worker receiving as little as N50,000.00 per month should be exempt from personal income tax. – the employees. “
According to him, “the current rate of value added tax, VAT, should be reduced from 7.5% to its initial rate of 5% because organizations and workers are already faced with multiple taxes that discourage in a largely investors “.
On capital gains tax, he said; “The sums obtained as compensation for loss of service, be brought to a maximum of 50,000,000.00 N compared to its initial amount of 10,000,000.00 N. This amount (50,000,000.00 N) shall not be a taxable gain and shall not be subject to tax under this Act, provided that any sum greater than N50, 000, 000. 00 is not so exempt, but the excess amount will be a gain taxable and subject to tax accordingly. term and not be taxed either. “
TUC also argued that “tax should be exempt from the premium paid to the insurance company by an individual for insurance of his or her life or that of his spouse or a deferred annuity contract on his life. own life or that of his spouse. great relief for the insured.
âThe federal government and all decision-makers should develop policies that are inclusive, redistribute wealth and reorient the socio-economic behavior of the population. Unless this is done, Nigeria could end up being a spectator of African continental free trade. Accord, the AfCFTA as a consumer country would not be able to play a meaningful role.
“All congressional affiliates are currently inundated with letters from organizations calling for layoff negotiations. To save the few jobs available, the government must adequately review its policies.”
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