Reps Okay Controversial Tax Reform Bills For 2nd Reading

BY SEGUN ADEBAYO – Following an exhaustive and robust debate on the general principles of the controversial Tax Reform Bills, the House of Representatives on Wednesday passed the legislation for a second reading

This is after the Lower Legislative chamber had consolidated the four tax reform bills sent to it by President Bola Ahmed Tinubu last year into one before flagging off debate on the general principles.

The bills were consolidated following a motion by the House Leader, Professor Julius Ihonvbere, having been granted the leave by Speaker Abbas Tajudeen.

According to the House order paper, the bills consolidated include: “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 (HB.1756); A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007 and Enact the Nigeria Revenue Service (Establishment) Bill to Establish 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 (HB.1757)”.

Others 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 Harmonisation, Coordination and Settlement of Disputes arising from Revenue Administration in Nigeria and for Related Matters (HB.1758) and 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 (HB.1759).

Leading debate on the consolidated tax reforms, the House Leader, Prof Ihonvbere, stressed the necessity of overhauling the country’s tax reform which he described as obsolete.

Ihonvbere, who spoke on the general principles of the bills, thanked the Nigerian Governors’ Forum (NGF) for their valuable inputs in retooling aspects of the VAT sharing formula which has helped to douse the earlier concerns and tension that trailed the tax reform bills.

He said the bill, which aims to modernise the nation’s tax reform system, will empower citizens and enhance inclusive growth.

The Lawmaker further explained that if passed, the tax reforms will benefit Nigerians as they propose harmonisation of multiple taxes, reduction of PAYE tax, provision of zero VAT on food, healthcare, education etc and also provision of incentives for low income employees.

Also contributing to the general principles debate on the bills, most of the lawmakers expressed their support that they be passed for second reading.

In his intervention, Bamidele Salam (PDP, Osun), said the bill will ensure more resources accrue to the sub-national government while enabling them to provide the needed development to the people at the grassroots.

Describing the existing tax administration system in the country as obsolete and duplicatory in nature, Salam said this has not only led to stunted economic growth, but also discouraged investors’

For him, it is important that the paramount consideration in tax reforms should focus more on wellbeing and welfare of the Nigerian people rather than selfish interests and irrelevant matters.

On his part, Rep Sada Soli (APC), representing Jibia/Kaita Federal Constituency of Katsina State, said the issue of fairness and reasonability must be put into consideration in enacting the tax reforms legislation.

Specifically raising concerns over several inconsistencies in a number of the clauses contained in the tax reform bills and urging the Committee working on the bills to look into and remove, Soli also expressed worries over the ambiguity in some clauses of the bills.

He said such ambiguity will leave the legislation open to abuse and misinterpretation.

However, canvassing support for the bills, Rep Ademorin Kuye (APC), representing Somolu Federal Constituency of Lagos State, said the need for revenue generation to meet the country’s infrastructural deficit cannot be overemphasised, hence, the tax reforms should be supported.

Similarly, support that the bills be passed for second reading came from other lawmakers including George Odinobi, representing Njikoka/Dunukofia/Anaocha constituency of Anambra State; and Makki Yalleman, representing M/Madori/Kaugama constituency of Jigawa State.

Others who queued up behind passing the bills for second reading are Cyril Hart, representing Degema/Bonny Constituency of Rivers state; Igariwey Iduma, representing Afikpo North/Afikpo South federal constituency of Ebonyi State; and Mariam Onuoha, representing Okigwe North federal constituency of Imo State

Consequently, the consolidated bills were overwhelmingly passed for a second reading after Speaker Abbas Tajudeen decided to take a voice vote arising from the Lawmakers’ extensive deliberation