TUC Tasks FG to Slash Taxes by 50% Amid Rising Living Costs

The Trade Union Congress (TUC) has asked the Federal Government to cut taxes by 50% to cushion the impact of inflation and ease hardship on workers and businesses.

TUC President Festus Osifo made the demand Monday during a press briefing in Abuja, saying current tax burdens are “choking households and killing small businesses” already hit by subsidy removal, currency reforms, and high food prices.

“The Federal Government must slash taxes by 50% across the board,” Osifo said. “Workers are overburdened. Disposable income has collapsed. When taxes take too much, compliance drops and the economy suffers.”

He argued that a 50% cut would boost consumer spending, keep SMEs afloat, and reduce job losses. “This is not about revenue loss. It’s about economic survival. A wider tax net with lower rates will yield more than high rates that nobody can pay.”

The Congress specifically urged reductions personal Income Tax For workers earning below ₦1.5m annually, Company Income Tax From 30% to 15% for SMEs and manufacturers.

Osifo said the relief should run for 18 months, then be reviewed. He called for simultaneous enforcement against tax evasion by high-net-worth individuals and multinationals to plug leakages.

The demand comes as headline inflation remains elevated and labour unions push for new social cushioning measures ahead of the 2026 budget. The Presidential Fiscal Policy and Tax Reforms Committee has proposed harmonising taxes but also seeks to raise non-oil revenue.

Osifo warned that without urgent relief, industrial unrest could grow. “You cannot tax poverty. Nigerians need breathing space,” he said.