*The Senate, in the National Assembly, Abuja, passes the four Tax Reforms Bills for second reading through voice votes, after the Senators had gone into a closed-door session to discuss the tax bills President Bola Ahmed Tinubu transmitted to the Federal Legislature for consideration and passage October 3, 2024

*Reasons Nigeria should reform its tax administration system now 鈹�Oyedele, Chairman of Tax Reform and Fiscal Reform Committee

Gbenga Kayode | 绿帽献妻

The Senate, in the National Assembly (NASS), Abuja, FCT, Thursday, November 27, 2024, passed the four Tax Reforms Bills for second reading through voice votes.

绿帽献妻 reports passed the tax bills for the second reading after the Senators had gone into a closed-door session to discuss the four bills, which President Bola Ahmed Tinubu earlier had transmitted to the Federal Legislature October 3 this year.

Mr. Taiwo Oyedele, Chairman of the Presidential Tax and Fiscal Reform Committee

The Senate passed through second reading a Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman as part of Tinubu鈥檚 comprehensive tax reforms package.

The session, Thursday, saw lawmakers deliberating on the general principles of the tax reforms bills in the NASS.

The proposed tax legislation seeks to harmonise, coordinate, and resolve disputes arising from revenue administration in Nigeria.

Ahead of the passage for second reading, Mr. Taiwo Oyedele, Chairman of the Presidential Tax and Fiscal Reform Committee, had made a comprehensive presentation to the Senators in the Upper Legislative Chamber of the NASS.

With copious historical backgrounds to the four Tax Reforms Bills, Oyedele dissected, analysed, and highlighted the benefits of each of the bills to the Nigerian Senators.

He equally justified the rationale behind his Committee鈥檚 making the recommendation to the Executive for evolving the Tax Reforms Bills.

The Chairman of the Committee, in his over an hour鈥檚 presentation, as well reaffirmed that the Nigerian Government should take the requisite step to reform its tax administration system towards enhancing needed investments and heralding national prosperity in consonance with the best practice in other parts of the world.

Tax Reforms Committee set for further stakeholder engagements, stakeholder inputs, says Chairman

Oyedele, in his verified X account Thursday, also confirmed that the Nigerian Senate has passed the Tax Reforms Bills for second reading.

He wrote:聽 “We are pleased to note that all the Tax Reform Bills have passed Second Reading at the Senate, and now referred to the Committee on Finance for the next legislative actions.

“This provides an opportunity for further engagements and stakeholder inputs, including public hearing.”

It is recalled that President Tinubu鈥檚 transmission of the four Tax Reforms Bills was sequel to the recommendations of the Taiwo Oyedele-led Presidential Tax Reforms and Fiscal Committee.

The bills are: The Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.

The two others are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service (FIRS) Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.

After Tinubu submitted the bills for consideration and passage by the Federal lawmakers, the move has since generated much controversy, particularly with the Northern Governors Forum, and other stakeholders kicking against the tax reforms over an allegation of being anti-North in content.

Concerned by then mounting opposition against the bills from the part of the country, the Presidency later explained that the bills were not targeted at any particular region but to develop the Nigerian economy.

The opposition, public hearing, and debates around Tax Reforms Bills

Earlier, while the Tax Reforms Bills were generally acknowledged as critical to overhauling Nigeria鈥檚 tax system and reducing the tax burden on particularly vulnerable citizens and Small and Medium Enterprises (SMEs), Sen. Ali Ndume from Borno State, North-East Nigeria, has continued to reservations about the timing and certain provisions of the bill.

The Federal legislator has suggested that the reforms, with necessary amendments, could be passed 鈥渋n less than 24 hours鈥� if withdrawn and reintroduced.

However, the Chief Whip strongly opposed this view, emphasising the importance of advancing the bill to the public hearing stage.

鈥淭he bill should scale second reading and undergo thorough examination during the public hearing. Afterward, it can be subjected to clause-by-clause consideration.鈥�

On the flipside, Hon. Abdulmumin Jibrin, another member of the National Assembly, had earlier expressed confidence that the controversial Tax Reforms Bills would be passed into law after consideration.

Speaking on a private television show recently, Jibrin, representing Kiru/Bebeji Federal Constituency of Kano State in the House of Representatives, declared that the bills are 鈥渘ot dead on arrival鈥�.

He also emphasised that Northern Nigeria is not against the said tax reforms bills, noting 鈥渋t is not a consensus in the North that this bill should be shut down.

鈥淎nd talking for myself and also how I know the National Assembly operates in terms of following procedures of the passage of the bill, I can be able to tell you authoritatively that the bill is not dead on arrival.鈥�

Jibrin stated: 鈥淚 can explain to you that hundreds of clauses in these bills are things we have been pursuing for ages. And I will be able to tell you this: the work that we are going to do for Nigerians to see all the clauses in detail and everything, I can confidently tell you that bill will go through the processes in the National Assembly, and it will be passed.鈥�

NASS will consider tax bills with stakeholders’ inputs before passage into laws: Tinubu

Despite the reported controversies over the Tax Reforms Bills submitted to NASS, and sequel to the NEC intervention to the effect, that President Tinubu should withdraw the bills form the National Assembly for consultations, the Nigerian leader, early November 2024, however, clarified the legislative process, which has already begun on the tax reforms bills, yet provides an opportunity for inputs and necessary changes without withdrawing the bills from the National Assembly.

Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, disclosed the President acknowledged that he received the National Economic Council’s recommendation that the tax reform bills already sent to the National Assembly be withdrawn for further consultation.

Tinubu, nonetheless, noted that the legislative process, which has already begun, offers an opportunity for inputs and necessary changes without withdrawing the bills from the Federal legislature.

The President also urged the Council to allow the process to take its full course, statting the Federal Government would wlcome further consultations and engagements with key stakeholders to address any reservations about the bills while the National Assembly considers them for passage.

Tax Reforms Bills 鈥榮hould be withdrawn’ from NASS, Ndume insists

According to the only dissenting voice, Sen. Ali Ndume: 鈥淩eforms are necessary, I am not against any reforms. My problem is the timing as it is today in Nigeria as we say I want to add to what Senator Seriake said.鈥�

Ndume stated: 鈥淥ne will be at the public hearing, and the issue of derivation because the Constitution has to be amended before some of the proposals of the Bill can be affected.

鈥淭his bill should be withdrawn, we work on it, and submit it after getting the buy-in of the Governors, Traditional Rulers and the NEC.鈥�

He further noted: 鈥淚 looked at the bill, and it contains so many but these two things VAT and Derivation. You negotiate first before we come to take a position.

鈥淚t looks attractive but it may not be what it is. If you move a tax burden to the manufacturer, he will transfer it to the consumer.鈥�

The lawmaker said: 鈥淚n the bill, we say a reduction from 30% to 25% which means that the person in Nnewi that is no longer able to make Billions, you are charging him with the same person that is just sitting down doing nothing.鈥�

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