
A professor of Accounting and Financial Development, at the Leed City University, Ibadan, Professor Godwin Oyedokun, weekend charged the Nigeria Labour Congress (NLC) to engage in positive negotiations with the federal government on the proposed Tax Reforms Bills rather than opposing the reforms.
Professor Oyedokun gave the charge in Ibadan weekend in his lecture titled: “Dialogue On “Tax Reform Bill” as the guest lecturer during the Central Working Committee meeting of the Nigeria Labour Congress and the launching of South-West Compressed Natural Gas Buses,
The university don stated that there is the need for the NLC to scrutinise the proposed Personal Income Tax rate and carefully analyze the implications of the new tax rate on workers’ salaries, ensuring they understand the mathematical calculations involved.
Professor Oyedokun, while stating that the proposed tax rate is an improvement over the current system, but there’s still room for enhancement urged the NLC to revisit their strategies, focusing on how the tax reforms affect workers, and to advocate for benefits in-kind to be exempt from taxable income.
“NLC have the responsibility to quickly sit down and check the personal income tax rate and to ensure that they put mathematics together to ensure that they practicalise it with certain amount of money in terms of salary of some of their workers and see the implication,” he said.
He added added: “What is currently being used is not the same thing as what is been proposed by the federal government, what is been proposed is better than what is currently been used.
“However, it can be better than that. I charge the NLC to go back to their drawing board put things together to actually check this as it affects workers and restrict their scope to what the mandate they have on what they supposed to doing and by so doing.
“I also charge them that they should look at some allowances, some benefits in kind that would be taxable, if they can make case. So far, this government is saying they have the interest of low income earners at heart. Then, they should see how such benefits in kind can be removed from taxable income to non-taxable income legitimately. So, if they can do that, of course, they will have better deal.
The university don then cautioned the NLC to adopt a peaceful and strategic approach to activism, utilising their resources effectively without disrupting national peace, adding that delaying the passage of the tax reforms would only perpetuate the outdated system, which is detrimental to worker’s interests.
“I also said that in terms of activism that they should not do it in a manner that would make it to be drag, go with demand, ensure you use all your apparatus without disturbing the peace of the country to get it done. However, the more we delay passage of this, whatever the amendment, the more we would continue to pay old one and old one is not better.”