TUC, Sharia council reject proposed VAT increase from 7.5%

The Trade Union Congress of Nigeria, TUC, and the Supreme Council for Shari’ah in Nigeria, SCSN, have opposed proposals to gradually raise Value Added Tax, VAT, from 7.5% to 15% under the Tax Reform Bills.  

Speaking at a public hearing in the House of Representatives, TUC President Festus Osifo, represented by Secretary-General Nuhu Toro, argued that maintaining VAT at 7.5% would ease financial pressure on Nigerians already facing economic hardship. He also urged lawmakers to raise the tax exemption threshold from ₦800,000 to ₦2.5 million per annum, saying this would provide relief for low-income earners.  

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Ahmed Bello of the Supreme Council for Shari’ah in Nigeria echoed these concerns, calling for VAT to be reduced to 5% or, at the very least, retained at 7.5%. He warned that higher taxes would further strain households struggling with rising living costs.