The Trade Union Congress of Nigeria (TUC) has proposed increasing the annual tax exemption threshold from N800,000 to N2.5 million, citing the need to ease the financial burden on struggling Nigerians due rising inflation, unemployment, and cost of living.
In a statement signed by its President, Festus Osifo, on Tuesday, TUC said the current threshold of N800,000 does little to address the economic challenges faced by many Nigerians.
It noted that increasing it to N2.5 million would increase disposable income for those within the affected income bracket and provide much-needed relief.
The TUC also commended key decisions made during negotiations between state governors and federal government representatives, including maintaining the Value Added Tax (VAT) rate at 7.5% and ensuring the continued operations of TETFUND and the National Agency for Science and Engineering Infrastructure (NASENI).
Additionally, the TUC welcomed the inclusion of a derivation component in the VAT distribution formula among the three tiers of government.
