The Trade Union Congress of Nigeria (TUC) has kicked against the proposed increase in the Value Added Tax (VAT) rate by the federal government.
TUC have warned that such a move would exacerbate the economic challenges faced by Nigerians.
The proposed phased VAT hike, outlined in the Federal Government’s Tax Reform Bills, seeks to raise the current rate of 7.5% to 10%, 12.5%, and ultimately 15%.
The TUC, however, described the plan as ill-timed and detrimental to the welfare of citizens already struggling with inflation, unemployment and rising living costs.
During a press briefing in Abuja on Tuesday, TUC President Festus Osifo, speaking after the union’s National Executive Council meeting on November 26, 2024, emphasised the importance of maintaining the VAT rate at 7.5% to safeguard households and businesses from additional financial strain.
“Allowing the Value Added Tax rate to remain at 7.5 per cent is in the best interest of the nation,” Osifo stated. “Increasing it now would impose an additional burden on households and businesses already struggling with economic challenges.”
He added that raising VAT could stifle economic growth by eroding consumer purchasing power and discouraging spending.
