The Trade Union Congress (TUC) has opposed the Nigerian Government’s proposal to raise Value Added Tax (VAT) from 7.5% to 15%, describing it as a burden on struggling Nigerians.
TUC President Festus Osifo stated on Tuesday that keeping VAT at 7.5% is crucial to avoid worsening inflation, unemployment, and the cost of living.
“Increasing VAT would further strain households and businesses, slowing economic growth and reducing purchasing power,” Osifo warned.
The union also praised the contributions of NASENI and TETFUND to education and technology and stressed their importance in national development.
The TUC supported VAT derivation sharing among government tiers but called for tax exemption thresholds to rise from ₦800,000 to ₦2,500,000 annually to ease economic pressures on low-income earners.
The Congress also raised concerns about revenue losses tied to royalty collection under the proposed tax reforms.