The organised labour in Kwara State has called on the state government to urgently reverse a new tax regime recently imposed on public sector employees following the implementation of a N70,000 minimum wage for the state’s least-paid workers.
Labour leaders expressed their frustration that, contrary to prior discussions with the government regarding tax relief, an additional tax percentage was instead deducted from workers’ salaries.
In response to this issue, a joint meeting of the State Administrative Council of the Nigeria Labour Congress and the Trade Union Congress took place on Thursday in Ilorin.
Following the meeting, the labour leaders issued a joint statement demanding that the government lower the tax rate on workers’ wages.
The statement, released on Friday, was signed by NLC Chairman Muritala Olayinka; TUC Chairman Olayinka Onikijipa; Coalition of Health Workers Union leader Isaac Bolatito; and the Chairman and Secretary of the Joint Negotiation Council, Saliu Suleiman and Tunde Joseph.
The statement highlighted concerns about the Kwara State government’s apparent failure to extend the new minimum wage to pensioners, urging the administration to address this disparity.
Additionally, the organised labour requested that workers be granted a tax holiday on the additional amount resulting from the N70,000 wage adjustment, allowing for 12 months of relief.
The labour leaders warned that failure to meet these demands could lead to unrest, stating, “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 said.
Previously, Governor Abdulrahman AbdulRazaq had approved the N70,000 minimum wage for the lowest-paid workers in Kwara, following an announcement from the Federal Government.
Sccording to Kwara State Commissioner for Finance, Dr. Hauwa Nuru, the increased wage was set to take effect across the public sector beginning in October 2024.
“This decision, which includes consequential adjustments to the relevant salary structures, was made after a successful tripartite meeting between government representatives, the leadership of the Organised Labour in Kwara State — Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and the Joint Negotiating Council (JNC) — and representatives from the organized private sector,” the Commissioner said in a statement.
As the organised labour presses for a tax holiday and tax adjustments, tensions appear to be building, and the Kwara State government is expected to address the labour demands to maintain industrial peace across the state’s workforce.
