The Labour union under the umbrella of the Trade Union Congress (TUC) of Nigeria warned that the move could worsen the economic hardship faced by Nigerians.
Speaking at a press conference held in Abuja against the backdrop of the controversial tax bills, the TUC President, Festus Osifo said the VAT rate at 7.5 per cent was crucial to safeguarding Nigerians from additional financial pressure.
Osifo. however, called for a review of the tax exemption threshold, urging the government to raise it from N800,000 to N2.5 million per annum to ease the financial strain on low-income earners.
“Allowing the Value Added Tax rate to remain at 7.5 per cent is in the best interest of the nation. Increasing it now would impose an additional burden on households and businesses already struggling with economic challenges.
“With inflation, unemployment, and the cost of living on the rise, higher taxes could stifle economic growth and erode consumer purchasing power.
“This measure would increase disposable income, stimulate economic activity, and provide relief to struggling Nigerians.
“The threshold for tax exemptions should be increased to N2,500,000 per annum. This adjustment would offer much-needed relief to low-income earners, enabling them to cope with the current economic challenges.” Osifo
