The Trade Union Congress (TUC) and the Supreme Council for Sharia in Nigeria have rejected the proposed increase in Value Added Tax (VAT) from 7.5% to 15%, warning it will worsen economic conditions for Nigerians.
At the National Assembly public hearing, TUC Secretary-General, Nuhu Toro, argued that raising VAT would increase inflation and unemployment, putting more pressure on struggling households and businesses. The TUC also called for raising the tax exemption threshold from ₦800,000 to ₦2.5 million per annum.
The Supreme Council for Sharia in Nigeria opposed the VAT hike and called for a reduction to 5% or, at worst, maintaining the current 7.5%. The council also rejected the inheritance tax provision in the Nigeria Tax Bill, stating that it contradicts Islamic inheritance laws.
Meanwhile, the Kano State Government described Nigeria’s tax system as inefficient and urged lawmakers to ensure fairness and justice in tax policies.
