Senate Passes Tax Reform Bills Transmitted by the Presidency For Second Reading

By Trustbase News On Nov 28, 2024

The Senate on Thursday passed the four tax bills for second reading through voice votes.

These bills passed through second reading includes, Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombud as part of Tinubu’s comprehensive tax reform package. The proposed legislation seeks to harmonize, coordinate, and resolve disputes arising from revenue administration in Nigeria.

Recall that President Tinubu transmitted the four tax reform bills to the National Assembly for consideration on October 3.

And the move had generated controversy with the Northern governors and other stakeholders kicking against the tax reforms. Worried by this situation, the Presidency explained that the bills were not targeted at any particular region but to develop the country.

ADVERT

The session saw lawmakers deliberating on the general principles of the tax reform bills. Earlier, the Senate had gone into a closed-door session to discuss the four bills transmitted by President Tinubu on September 3, 2024, following the recommendations of the Taiwo Oyedele-led Tax Reforms Committee.

While the reforms were generally acknowledged as critical to overhauling Nigeria’s tax system and reducing the tax burden on citizens, Sen. Ali Ndume expressed reservations about the timing and certain provisions of the bill.

He suggested that the reforms, with necessary amendments, could be passed “in less than 24 hours” if withdrawn and reintroduced.

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

“The bill should scale second reading and undergo thorough examination during the public hearing. Afterward, it can be subjected to clause-by-clause consideration.”

According to the only dissenting voice, Sen. Ali Ndume: “Reforms 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 Seraike said.

“One 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.

“This bill should be withdrawn, we work on it and submit it after getting the buy-in of the Governors, Traditional Rulers and the NEC.

“I 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.

“It 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.

“In 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.”

FG Nigerian Senate