PARTICIPANTS AT CDWR-ORGANISED SYMPOSIUM DEMANDS PRO-LABOUR/MASSES CHANGES TO THE TAX REFORM BILL

The Campaign for Democratic and Workers Rights (CDWR) organized a symposium over the Tax Reform Bill on Tuesday March 11, 2025 to discuss and put forward a pro-labour/poor/masses tax positions. The symposium took place in Lagos and had participants from the trade unions, civil society organisations. CDWR also presented its position on the tax reform through the launch of its pamphlet titled: “Tinubu’s Tax Reform will compound the Economic Crises; CDWR Demands a Progressive Tax System”.

The trade unions represented include Academic Staff Union of Universities (ASUU), Association of Senior Staff of Banks, Insurance and Financial Institutions Employees (ASBIFIE), Cab Operators Union, Lagos State Council of Amalgamated Union of Public Corporation, Civil Service Technical and Recreational Services Employees (AUPCTRE), Lagos State Council of National Association of Nigeria Nurses and Midwives (NANNM), Precision Electrical and Related Equipment Senior Staff Association (PERESSA), National Union of Food Beverage and Tobacco Employees (NUFBTE) and Lagos State Welders Association. There were also representatives of the Lagos State Councils of both Nigeria Labour Congress (NLC) and Trade Union Congress (TUC). The pro-labour organisations and civil society organisations in attendance are Democratic Socialist Movement (DSM), Centre for Popular Education (CEPED), MEKUNU-KOYA, Joint Action Front (JAF), ACTIVISTA, Movement for African Emancipation (MAE), Socialist Party and Socialist Vanguard Tendency (SVT).

The discussion was led by a tax expert, Mr. Lanre Akinola, and there were contributions from organisations’ representatives. There was an agreement on the following:

• A rejection of the proposed scrapping of TETFUND and other agencies as stipulated in section 59 of the Nigerian Tax Bill 2024. The need to include union’s representatives on the board of these agencies and for transparent management of funds. The participants concluded that scrapping of TETFUND will further undermine the already bad state of our tertiary education and there is need for government to increase funding to education at all levels in addition to the Intervention Funds.
• A rejection of the proposed steady increase in VAT rate from 7.5% to 15% as stipulated in Section 146 of the Nigerian Tax Bill 2024. Participants came to the conclusion that increment in VAT will exacerbate the current cost of living crises and increase poverty.
• There is the recognition that Section 77 of the Nigerian Tax Administration Bill has polarized the country and the Bill will make the weaker states across the country to be weaker in terms of federal allocation distribution. Besides, there is the need for the capitalist ruling elite to end being just obsessive with imposing taxes and levies on ordinary people but to prioritise much more investing in the people through expansion of basic amenities, putting in place social programme that improves the wellbeing of citizens and setting up of productive ventures and activities to create decent mass jobs and add real value.
• There is the recognition that the increments in electricity tariff, and prices of petroleum products together with the devaluation of the Naira have drastically increased cost of living and poverty, and there is the urgent need for the reversal of these anti-poor/workers policies.
• There is the need for the 2 trade union centres (Nigeria Labour Congress and Trade Union Congress) to urgently harmonize their positions and present a common position that defends the working class and the poor. They should mobilise for mass struggle to defend the position.

The CDWR recognizes that the Tax Reform Bill grants relief to workers whose annual salaries are less than N800, 000. But in reality there are no such workers in the public sector except they don’t enjoy the current minimum wage. In the private sector, it is casual workers who are illegally denied the right to minimum wage and decent work conditions who can benefit from the relief. However, in the face of devastating effects of the anti-poor policies of Tinubu government such a relief is incapable of reducing the poverty imposed on such workers. CDWR believes that only workers who have adequately met their basic needs should be taxed just the same way companies’ profit is taxed. In other words, all workers whose salaries cannot meet their basic needs should be exempted from taxation.

The CDWR opposes the proposed reduction in the tax to be paid by companies as stipulated in Section 56 of Nigerian Tax Bill 2024 wherein the tax rate will be reduced from 30% to 27.5 in 2025 and 25% from 2026. Rather than legislate a reduction for big companies, the currently rate of 30% should be increased to enable more workers to be exempted.

The CDWR holds the position that the Nigerian Tax Bill granted so many concessions to big business as stipulated in Section 56, 167 and 187 of the Nigerian Tax Bill and there is the need for the wealthy, and big companies which make super profits to be taxed heavily while all workers earning N250,000 and below monthly should be exempted.

The CDWR holds the view that the capitalist ruling elite cannot tax or levy the country into prosperity. There is the need for a planned economy and nationalization of the commanding heights of the economy under democratic control of the working class. This is in order to generate adequate resources and ensure their judicious use for the benefits of the vast majority

Rufus Olusesan

National Chairperson

Chinedu Bosah

National Publicity Secretary

CDWR email: [email protected]