The Nigerian Senate has temporarily suspended its work on the contentious Tax Reform Bills, citing public outcry and regional disagreements. This decision was announced during a plenary session led by Deputy Senate President Jibrin Barau, where he emphasized the need for greater deliberation and consensus-building to resolve the controversies surrounding the proposed legislation.
The Tax Reform Bills, which include the Nigeria Tax Bill, 2024, the Nigeria Revenue Service (Establishment) Bill, 2024, and the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, have faced criticism from several quarters. Northern governors and lawmakers have been particularly vocal, rejecting aspects of the bills they deem unfavorable to their region.
Governor Seyi Makinde of Oyo State, speaking after the National Economic Council’s 144th meeting chaired by Vice President Kashim Shettima, confirmed that the council had recommended the withdrawal of the bills for further deliberation. According to Makinde, sections of the bills were found offensive by parts of the country, necessitating a review to foster understanding and consensus.
Concerns from the North
Borno State Governor Babagana Zulum expressed concerns about the rushed enactment of the Tax Reform Bills, highlighting potential regional disparities in the proposed value-added tax (VAT) distribution formula. Zulum pointed out that calculations indicated benefits skewed towards Lagos and Rivers States, leaving northern states at a disadvantage. “We need deeper consultations to address misconceptions and ensure fairness,” Zulum stated during an interview on Channels Television.
Senator Shehu Buba of Bauchi South echoed these concerns in an interview with the BBC Hausa Service, calling for a thorough review by tax policy experts. He criticized the proposed VAT derivation formula, arguing that it disproportionately impacts northern states.
Collaborative Efforts
In response to these challenges, the Senate has established a special committee to collaborate with the executive branch and other stakeholders to address contentious areas. President Bola Tinubu has also directed the Ministry of Justice to work closely with the National Assembly to resolve the “grey areas” in the bills. Minister of Information Mohammed Idris confirmed this directive, stating that the government is open to meaningful input to ensure the bills align with national interests.
Deputy Senate President Jibrin Barau emphasized that the Senate is committed to serving as a stabilizing force, capable of resolving disagreements through dialogue and consensus. He noted, “The Senate has consistently provided solutions to national challenges since 1999, and this issue will be no different.”
The Senate committee, along with its leadership, is scheduled to meet with the Attorney-General of the Federation to identify and resolve areas of disagreement. This collaboration aims to create a unified approach to addressing the nation’s fiscal challenges without exacerbating regional tensions.
As the Senate debate continues, the Tax Reform Bills remain a focal point of national discourse, with stakeholders urging careful consideration to ensure equitable and effective fiscal reforms. 9am News will continue to monitor and report on developments surrounding this critical legislative matter.
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