BY EDMOND ODOK – Despite being dogged by controversies and open criticisms from stakeholders, especially from the Northern region, the Senate on Thursday passed for second reading the four contentious tax reform bills transmitted to it by President Bola Ahned Tinubu.
After scaling the hurdle for the Second Reading during plenary on Thursday, President of the Senate, Senator Godswill Akpabio referred the four bills to its Committee on Finance for further legislative action with the mandate to report back in six weeks.
The Finance Committee is led All Progressives Congress (APC) Senator Sani Musa, representing Niger East Senatorial district.
Prior to debate on the bills, the Senators had gone into a closed door session that lasted from 11.55am to about 12.42pm and back at the plenary, Senate Leader, Senator Opeyemi Bamidele (APC, Ekiti Central) led debate on the general principles of the bills.
Senator Bamidele said in his presentation that they are “A Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombud, for the harmonization, coordination and settlement of disputes arising from revenue administration in Nigeria and for related matters, 2024 (SB. 583).
“A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007 and enact the Nigeria Revenue Service (Establishment) Act to Establish the Nigeria Revenue Service, charged with powers of assessment, collection of, and accounting for revenue accruable to the Government of the Federation, and for related matters, 2024 (SB. 584).
“A Bill for an Act to Provide for the assessment, collection of, and accounting for revenue accruing to the Federation, Federal, States and Local Governments; prescribe the powers and functions of tax authorities, and for related matters, 2024 (SB. 585).
“A Bill for an Act to Repeal certain Acts on taxation and consolidate the legal frameworks relating to taxation and enact the Nigeria Tax Act to provide for taxation of income, transactions and instruments, and for related matters, 2024 (SB. 586).
Addressing his colleagues on the bills, the Senate President, Senator Akpabio stated that during the public hearing, experts and other stakeholders, including Governors under the aegis of Nigeria Governors Forum (NGF), and traditional rulers would be invited to make their presentations.
He said at the end of the day, the Upper Legislative chamber will be in a good position to give Nigerians and the country what is the best foot forward.
Forefront News noted that some top officials in Tinubu’s government on Wednesday, November 27 appeared before the Senate where they made detailed presentations on the contentious bills.
On September 3, 2024, President Tinubu had transmitted four tax reform bills to the National Assembly for consideration, following the recommendations of the Presidential Committee on Fiscal and Tax Reforms headed by Taiwo Oyedele for the review of existing tax laws.
Among 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.
Others include the Nigeria Revenue Service Establishment Bill, that aims to repeal the existing Federal Inland Revenue Service (FIRS) Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill to create a tax tribunal and a tax ombudsman.
Aside from the Northern governors, traditional rulers, and Northern Elders Forum that have rejected the bills, arguing that they were not in the national interest, the National Economic Council (NEC) chaired by Vice President Kashim Shettima, had also resolved that the tax reform bills be withdrawn from the National Assembly (NASS) by President Tinubu for wider consultations with stakeholders.
However, on Thursday, October 31, 2024, the President made a passionate plea that the bills be allowed to pass through the required legislative processes at both chambers.
According to him, such robust process will give concerned Nigerians the needed opportunity to get detailed briefs on the bills and make their informed inputs, particularly at the public hearing stage.
