Organised labour unions in Kwara State have called for a 50% tax waiver for workers instead of a temporary three-month financial bonus recently approved by the state government.
They argue that such a tax relief would provide more substantial and sustained support for the financial well-being of employees.
Governor Abdulrahman Abdulrazaq announced the financial bonus, which equals the monthly Pay As You Earn (PAYE) tax obligation for all civil servants, including local government employees.
This initiative, aimed at providing temporary relief, was communicated in a statement by Dr. Hauwa Nuru, the state’s Commissioner for Finance, on Monday. The bonus is set to last for a minimum of three months.
“This bonus has been approved as a buffer to bridge the gap that the correct PAYE deduction may have wrought on the newly implemented minimum wage.
“It is meant to serve as a soothing balm as workers adjust to the PAYE that was just correctly implemented in line with the Personal Income Tax Act.”
The commissioner added, “The payment of the bonus is effective from October and will run till December 2024. This is a significant step by His Excellency to support workers.”
The finance commissioner, in the statement, however, advised “workers who have not registered with the Kwara State Residents’ Registration Agency (KWSRRA) to do so immediately because anyone without it will not get the bonus for November and December.”
In response, the organised labour unions, which include the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), expressed appreciation for the government’s gesture.
However, they emphasized that a 50% tax reduction would be more effective in alleviating the economic pressures faced by workers.
In a letter to the governor following a meeting of the State Administrative Committee (SAC), the unions highlighted the significant tax deductions from workers' salaries after the implementation of the N70,000 minimum wage.
The letter was jointly signed by several union leaders, including NLC Chairman Comrade Muritala Olayinka and TUC Chairman Comrade Olayinka Onikijipa, among others.
They stated that the government’s implementation of the minimum wage was inconsistent with the agreements made during negotiations with workers.
The letter, titled “Letter of Appreciation,” dated November 4, 2024, and signed jointly by the state chairmen of the Nigeria Labour Congress and the Trade Union Congress, said, “The Joint State Administrative Council (SAC) of Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) bring you greetings of the season and write to express its profound appreciation for your kind approval of three months tax waiver for the Workers in Kwara State.
“However, our gratitude to you would have been limitless if you could graciously approve a 50% tax reduction for the workers due to the prevailing economic hardship and to justify the consequential adjustment on minimum wage.
“Additionally, the Joint Labour centres urged you to re-examine the issue associated with the implementation of consequential adjustment for the pensioners in the state for your kind approval.
“We are grateful to you for taking a lead in the area of workers welfare. While we look forward to your maximum cooperation, please, accept the assurance of the workers’ resolve for industrial harmony.”
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