Reps to begin debate on tax reform bills today

The House of Representatives will today begin debate on the tax reform bills presented to the National Assembly by President Bola Ahmed Tinubu for consideration and approval. The House had on the 30th of November last year suspended its planned debate on the bills indefinitely following opposition to sections of the bills by overwhelming members […]

The House of Representatives will today begin debate on the tax reform bills presented to the National Assembly by President Bola Ahmed Tinubu for consideration and approval.

The House had on the 30th of November last year suspended its planned debate on the bills indefinitely following opposition to sections of the bills by overwhelming members from the northern part of the country.

As at then the northern states governors were equally vehemently opposed to sections of the bills, which they said were inimical to the interests and wellbeing of the people of the North.

However, a member from one of the states in the North West Geopolitical Zone confided in our reporter yesterday that legislative work on the bills has been scheduled to resume, and is the main subject on the Order Paper of the House of Representatives for legislative proceedings today, Wednesday.

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According to the lawmaker, though the governors of the 19 northern states appear to have backed down from their stiff opposition to the bills, members of the House of Representatives from the region have resolved to ensure that no section of the pieces of legislation which is inimical to the interests of the people of the North is passed by the green chamber of the National Assembly.

“We in the Northern Caucus (of the House) met today (yesterday), with all leaders of the zonal caucuses in our own part of the country, including the Speaker (Abbas Tajudeen) in attendance, and we have resolved to ensure proper scrutiny of the tax reform bills.

“The House (of Representatives) will begin debate on the (tax reform) bills tomorrow (today), and we have agreed to work collectively and follow the proceedings diligently to ensure that we vigorously scrutinse all the bills so that no section that is harmful to the interests of our people is allowed to be passed into law,” the lawmaker said.

The Rep listed the zonal caucus leaders in attendance at the meeting as Ahmed Idris Wase (North Central), Mukhtar Betara (North East), and Sada Soli Jibia (North West), and that the Chairman of the Northern Caucus, Alhassan Ado Doguwa presided over the meeting.

According to the Rep, “though our governors (in the North) were said to have endorsed the revised bills, we believe that there are still sections that are antithetical to the interests of our people in the North, and we will follow through from the debate that is starting today up to the public hearings to be conducted by the Finance Committee, to make sure that every aspect the bills is not toxic.

“Also, when the clauses in the bills are being passed after the public hearings, we will painstakingly follow the deliberations to ensure that those toxic elements do not scale through that process,” the lawmaker stated.

It would be recalled that in a memo he circulated late last year, the Clerk of the House of Representatives, Dr. Yahaya Danzaria, announced the suspension of debate on the tax reform bills by the House.

The memo suspending the debate dated November 30, 2024 was titled, ‘Rescheduling of Special Session on Tax Reform Bills.’

It read: “I am directed by the House leadership to inform all Honourable Members that the special session, initially scheduled for Tuesday, December 3, 2024, to discuss all the tax reform bills, has been postponed to a later date.

“This rescheduling is due to the need for further and broader consultations with all relevant stakeholders. A new date and venue for the session will be communicated in due course. We regret any inconvenience this may cause and appreciate your understanding”, it said.

However, after a seeming truce between the governors of the 19 northern states and President Bola Ahmed Tinubu, the Nigeria Governors Forum (NGF) announced on the 17th of last month that governors of all the 36 states have agreed and endorsed a modified version of the bill. The announcement followed a meeting held the same day with the Taiwo Oyedele-led Presidential Committee on Fiscal Policy and Tax Reforms.

Among other alterations, the governors proposed allocating 30% of Value Added Tax (VAT) revenue based on derivation, instead of the initially proposed 60%, as part of efforts to address the concerns surrounding the tax reform bills. They also suggested a revised sharing formula, with 50% of VAT revenue shared equally among states and the remaining 20% based on population, to ensure a more equitable distribution of resources.

Initially, the tax reform bill had proposed a 60% VAT revenue share based on derivation, meaning states would receive funds proportional to the VAT generated within their territories. This had led to significant pushback from governors and lawmakers, particularly from the northern region.

Following the compromise, Governor Abdullahi Sule of Nasarawa State stated that the governors would now seek the support of their legislators to ensure the bills’ passage in line with the agreed-upon consensus.

President Tinubu had on September 3, 2024 transmitted four tax reforms bills to the National Assembly for consideration following the recommendations of the Oyedele-led presidential committee.

The bills include the Nigeria Tax Bill 2024, which aims 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 are the Nigeria Revenue Service Establishment Bill, expected to repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service as well as the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.