Federal Workers Seek PAYE Tax Cut as Rising Costs Erode Salaries

Federal civil servants have called on the government to reduce the Pay As You Earn (PAYE) tax deducted from their monthly salaries. They say rising prices for food, transport and other essentials have weakened their purchasing power despite the new minimum wage. Some workers complained that a senior officer earning less than ₦400,000 monthly could lose nearly ₦60,000 to income tax. They also argued that paying PAYE, VAT and other levies amounts to multiple taxation, especially as many households still fund their own electricity, water and security. The complaints come as the government begins a six-week review of tax reforms, including VAT thresholds, withholding tax and multiple taxation. Public-sector unions have also started a warning strike, demanding a reduction in petrol prices and a wage award to cushion economic hardship.

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