Organised Labour Demands Tax Justice: “The Current Nigerian Tax System is Rigged Against Workers” In a strongly worded joint statement, the leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC)—Comrade Joe Ajaero and Comrade Festus Osifo, respectively—have denounced recent tax policy proposals by the Federal Government as anti-worker, unjust, and a direct threat to economic inclusion and human dignity. The unions decried the rising burden of taxation on Nigerian workers, arguing that the current tax architecture fails the fundamental test of equity and fairness. According to them, it is regressive in structure, punitive in application, and blind to the economic realities of the working class. Highlights of Their Position: 1. Minimum Wage vs. Minimum Taxable Income: The new tax bill proposes N800,000 as the minimum taxable annual income, in a country where the proposed National Minimum Wage is N70,000/month or N840,000/year. This, the unions argue, is a paradox that erodes the purchasing power of the most vulnerable and violates the principles of fairness and ability to pay. “How can you propose taxing a worker whose annual income equals only eight bags of rice?”, the statement reads. 2. Excessive Taxation on Allowances: Housing, transportation, and medical benefits—traditionally seen as welfare-enhancing components of a worker's pay—are now facing taxation. This is a move the unions describe as unconscionable, especially amid galloping inflation and declining real incomes. 3. VAT Expansion and Regressive Levies: The expansion of Value Added Tax (VAT) on essential goods and introduction of new levies like the ‘Development Levy’ will raise living costs disproportionately for the poor, contravening the principle that taxes should not deepen poverty. 4. Failure to Tax the Rich and Corporations Fairly: While working-class Nigerians are burdened with Pay-As-You-Earn (PAYE) taxes and multiple consumption-based taxes, multinational corporations and high-net-worth individuals are under-taxed or evade taxes through legal loopholes and weak enforcement mechanisms. “The current system punishes productivity and protects privilege.” 5. Informal Sector and Presumptive Taxation: Far from integrating the informal sector through inclusion and support, the government’s presumptive tax policies often translate into harassment, extortion, and disincentives for micro-entrepreneurship. This contradicts the national economic strategy that aims to grow MSMEs and reduce unemployment. Labour’s Demands: A Blueprint for Tax Justice The unions call for a complete withdrawal of the proposed tax bills and advocate for the following structural reforms: Adoption of a truly progressive tax system: Ensure the wealthy, large corporates, and luxury earners pay proportionately higher taxes. Exemption of minimum wage earners from income tax: Align taxable thresholds with economic realities and ensure tax reliefs for low-income earners. Zero-rating VAT on basic goods and services: Such as food, medicine, school supplies, and public transportation. Curbing waste and corruption in government spending: Labour argues that workers should not finance elite misgovernance. Reform of presumptive tax regimes: To remove arbitrariness and support rather than punish the informal sector. Institutionalised consultation with labour unions and civil society: All fiscal policies must undergo social dialogue in line with International Labour Organization (ILO) standards. Conclusion: Workers Will Not Be Silent In closing, the NLC and TUC reiterated their resolve: “This is not just about economics—it’s about our right to live with dignity. PAYE is not paying us. We will not relent until taxation in Nigeria reflects justice, equity, and inclusion. We are the hands that build this country; we refuse to be treated as expendables.” Key Takeaway: Nigeria's tax policy must shift from extractive to developmental, from regressive to progressive, and from elitist to inclusive. Anything short of this is an affront to social justice and economic sustainability. Olatunji Abdulrazaq CNA, ACTI, ACIArb(UK) Founder/CEO, Taxmobile.Online