As reported by Punch, Kwara State Governor, Abdulrahman Abdulrazaq, has approved a financial bonus equal to the monthly Pay As You Earn (PAYE) tax obligation for all civil servants, including local government employees, as a temporary support measure.

This initiative, announced on Monday in a statement by Dr. Hauwa Nuru, the state's Commissioner for Finance, is set to last for a minimum of three months.

However, organised labour unions in the state have called for a 50% tax relief for workers rather than the three-month bonus, suggesting that a more extended tax relief would have a sustained impact on the employees' financial well-being.

In an earlier statement made available to newsmen, the government said, “This bonus has been approved as a buffer to bridge the gap that the correct PAYE deduction may have wrought on the newly implemented minimum wage.

“It is meant to serve as a soothing balm as workers adjust to the PAYE that was just correctly implemented in line with the Personal Income Tax Act.”

The commissioner added, “The payment of the bonus is effective from October and will run till December 2024. This is a significant step by His Excellency to support workers.”

The finance commissioner, in the statement, however, advised “workers who have not registered with the Kwara State Residents' Registration Agency (KWSRRA) to do so immediately because anyone without it will not get the bonus for November and December.”

The statement said “Labour unions have also agreed to a refund of the special levy deducted from workers' salary and suspension of deductions of the same until further notice.

“Governor AbdulRazaq's directive to deliver this relief speaks volumes about his humanity and his commitment to the welfare of the Kwara workforce.”

Reacting in a letter written to the governor after a meeting of the SAC on Monday, the organised labour said though they appreciated the government's kind gesture on the approval of the three-month tax waiver for the workers, they would have preferred a 50 per cent tax reduction to cushion the effect of the economic hardship in the country.

The letter, titled “Letter of Appreciation,” dated November 4, 2024, and signed jointly by the state chairmen of the Nigeria Labour Congress and the Trade Union Congress, said, “The Joint State Administrative Council (SAC) of Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) bring you greetings of the season and write to express its profound appreciation for your kind approval of three months tax waiver for the Workers in Kwara State.

“However, our gratitude to you would have been limitless if you could graciously approve a 50% tax reduction for the workers due to the prevailing economic hardship and to justify the consequential adjustment on minimum wage.

“Additionally, the Joint Labour centres urged you to re-examine the issue associated with the implementation of consequential adjustment for the pensioners in the state for your kind approval.

“We are grateful to you for taking a lead in the area of workers welfare. While we look forward to your maximum cooperation, please, accept the assurance of the workers' resolve for industrial harmony.”

The organised labour, comprising the NLC and TUC, last week, complained of high taxes deducted from workers' salaries following the implementation of the N70,000 minimum wage approved for workers in the state.

The State Administrative Committee of the organised labour in a statement jointly signed by the NLC Chairman, Comrade Muritala Olayinka; TUC Chairman, Comrade Olayinka Onikijipa; Coalition of Health Workers Union, Comrade Isaac Bolatito; and state Chairman and Secretary, Joint Negotiation Council, Comrade Saliu Suleiman and Comrade Tunde Joseph, respectively, said the implementation of the minimum wage by the government was at variance with what was agreed upon during the negotiation with the workers.

“Arising from the Joint SAC of NLC and TUC, we strongly condemned the recent tax imposed on Kwara State workers and demand a 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