The Trade Union Congress of Nigeria (TUC) is advocating for a significant increase in the tax exemption threshold from N800,000 to N2.5 million annually. This proposed change aims to alleviate the financial burden on low-income earners, who are struggling to cope with rising inflation, unemployment, and cost of living.
According to TUC President Festus Osifo, maintaining the current Value Added Tax (VAT) rate at 7.5% is crucial to safeguarding Nigerians from additional financial pressure. The union believes that increasing the VAT rate would worsen economic hardships and stifle economic growth.
The TUC also expressed concerns about the proposed transfer of royalty collection from the Nigerian Upstream Petroleum Regulatory Commission to the Nigeria Revenue Service (NRS), citing potential risks of revenue losses and inefficiencies.
Key points from the TUC's proposal include:
- Tax Exemption Threshold: Increase from N800,000 to N2.5 million annually to ease financial strain on low-income earners.
- VAT Rate: Maintain the current rate at 7.5% to avoid worsening economic hardships.
-Royalty Collection: Oppose the transfer of royalty collection from NUPRC to NRS due to potential risks of revenue losses and inefficiencies.
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