Labour Union Asks Kwara Government to Revoke Unfavorable Tax on Workers
By Omowumi Omotosho
Labour unions in Kwara State have called for an immediate reversal of the recently introduced tax policy applied to employees’ salaries, following the adoption of a N70,000 minimum wage for the lowest-paid public sector workers.
Expressing disappointment, union representatives highlighted that the government had originally promised tax relief as part of the wage increase discussions. Instead, workers are now facing a higher tax rate that was not part of the agreement.
In a joint statement issued after a State Administrative Council (SAC) meeting of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) held in Ilorin on Thursday, union leaders demanded a reduction in the new tax rate imposed on workers’ earnings across the state.
The statement was endorsed by several key labour leaders, including Comrade Muritala Saheed Olayinka, Chairman of the Kwara State NLC; Comrade Olayinka Onikijipa, TUC Chairman; Comrade Isaac Bolatito, who heads the Coalition of Health Workers Union (COHESU); and Comrades Saliu Suleiman and Tunde Joseph, who serve as the Chairman and Secretary of the Joint Negotiation Council (JNC), respectively.
The union voiced their disappointment over the state government’s decision of not extending the N70,000 minimum wage to pensioners.
The unions also urged the government to provide a 12-month tax exemption on the new minimum wage adjustments, offering financial relief for state workers.
The joint labour bodies called on the government to address their demands promptly, to prevent potential industrial action.
“The SAC of Joint Labour Centres met today to review the outcome of the new minimum wage payment to Kwara workers as approved by His Excellency, Governor AbdulRahman AbdulRazaq. The committee observed with dismay the notorious percentage tax deducted from our members.
“This was at variance with government/labour discussion at the negotiation table for tax relief on added sum or status quo ante on the percentage tax deduction.
“In view of the above, the committee resolved that government should grant tax holiday to Kwara State workers on the added sum for at least 12 months to serve as succour for workers in the state, and to review downward the tax percentage on workers salary.
“Arising from the Joint SAC of NLC and TUC, we strongly condemned the recent tax imposed on Kwara State workers and demand reversal of it to avoid industrial disharmony.
“The Joint State Administrative Council (SAC) of NLC-TUC observed with deep concern the non-implementation of the 2024 N70,000 minimum wage for pensioners in the state.
“The SAC of NLC-TUC urged the state government to address the plight of pensioners in order to avert industrial disharmony”, the labour leaders declared.