Trade Union Congress Commends FG on VAT, TETFUND Retention

The Trade Union Congress (TUC) has praised the Federal Government for making crucial adjustments to the Nigeria Tax Reform Bill. In a press statement, TUC President Comrade Festus Osifo expressed cautious optimism about the revisions, particularly the decision to maintain the Value Added Tax (VAT) rate at 7.5% and preserve the mandates of vital institutions like the Tertiary Education Trust Fund (TETFUND) and the National Agency for Science and Engineering Infrastructure (NASENI).

The TUC described these moves as significant steps towards protecting Nigerians from further economic hardship. Retaining the VAT rate at its current level was seen as a crucial victory, shielding households and businesses from additional financial strain amid rising inflation and unemployment.

The decision to maintain TETFUND and NASENI was also applauded, as these institutions are regarded as pillars of national development. TETFUND has been instrumental in advancing tertiary education, while NASENI has bolstered homegrown technological innovation.

However, the TUC expressed concerns about unresolved aspects of the Tax Reform Bill, including the need to increase the annual tax exemption threshold from ₦800,000 to ₦2.5 million. The Congress also warned against the proposed transfer of oil and gas royalty collections from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to the Nigeria Revenue Service (NRS), citing potential revenue losses and diminished investor confidence.

As conversations around the Tax Reform Bill progress, the TUC called on the government to demonstrate a commitment to equity, economic stability, and improved living standards for all Nigerians.