The Nigerian Senate has passed for a second reading the four controversial tax reform bills introduced by President Bola Tinubu aimed at reforming Nigeria’s administration.
The bills were read for the second time after a short debate during plenary on Thursday. The bills are the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
Leading the debate on the bill, Bamidele Opeyemi, Senate leader, explained that the bills aim to simplify and streamline tax administration, reduce burden on Nigerians especially low income earners.
Opeyemi said the bills will also eliminate incidence of double taxation, the mulitiplicity of taxes and levies paid by companies to protect businesses.
On the controversial revenue sharing formula, the Senate leader explained that the bills propose a sharing formula that will allow state governments share 55% of VAT and federal government takes from 10% , while LG share remain unaffected.
“Contrary to misrepresentation regarding the sharing formula, I state that these bills contains innovative and people-oriented proposals to cushion the effect of ongoing economic policies,” he argued.
He further said the bills will address lapses in the legal and institutional framework on tax admistration in Nigeria, which made it hitherto cumbersome.
Contributing to the debate, Sani Musa, chairman, Senate Committee on Finance, supported the bills for second reading stating that what the bill entails is good for this country.
He assured that the Committee will give the bills all legislative processes it requires and call for memoranda from all stakeholders
Ali Ndume, senator representing Borno North, argued that the bills should be withdrawn for proper consultation due to controversial clauses on revenue sharing formula, VAT deruvation and what he termed as poor timing for the introduction of the bills.
“I am not against it, but my problem is the timing when you talk about reforms , Nigerians misconstrue it,” he added.
Tahir Mongonu, in his contribution, argued that the bills should not need to be withdrawn as there will be ample opportunity for clause by cause review during public hearing.
Godswill Akpabio, the Senate President then put the bills to a voice vote and majority voted in favour. He referred the bills to the committee on Finance to report back in six weeks.
