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Minimum wage: Labour calls for reversal of tax imposed on Kwara workers

The organised labour in Kwara State has appealed to the state government to reverse the new tax regime following the implementation of the new minimum wage of N70,000.

The labour expressed disappointment over the move to effect a percentage on tax deductible from workers’ salaries, arguing that it is contrary to the negotiation with the government for tax relief for workers upon the payment of the new minimum wage.

Rising from a joint State Administrative Council (SAC) meeting of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) in Ilorin last Thursday, the labour leaders called for a downward review of the tax percentage on salaries of workers.

The labour said this in a joint statement signed by NLC Chairman, Comrade Muritala Olayinka; TUC Chairman, Comrade Olayinka Onikijipa; Coalition of Health Workers Union (COHESU), Comrade Isaac Bolatito; and state Chairman and Secretary, Joint Negotiation Council (JNC), Comrade Saliu Suleiman and Comrade Tunde Joseph respectively.

They lamented the refusal of the state government to implement the new N70,000 minimum wage for pensioners in the state.

The labour leaders urged the government to grant tax holiday to workers on the consequential adjustment of the new minimum wage of N70,000 for 12 months as succour.

According to the joint labour congress, the state government should swiftly act on the demand of the labour to avert industrial disharmony.

“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,” they said.

“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.

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“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.”

Kwara State Governor Abdulrahman Abdulazaq last Saturday approved the payment of N70,000 minimum wage for the least paid worker in the state as announced by the Federal Government of Nigeria.

The state Commissioner for Finance, Dr. Hauwa Nuru in a statement said that the approved wage will be implemented across the Kwara State public service, with immediate effect from October 2024.

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