AMID stiff opposition from Northern governors, the Senate has passed four tax reform bills proposed by President Bola Tinubu for second reading.
The bills passed a second reading after Opeyemi Bamidele, the Senate majority leader, led a debate on them on Thursday, November 28.
In addition to the dissenting governors, some senators from the North are opposed to the bills.
While leading a debate on them, Bamidele said the bills would simplify the tax landscape, reduce the burden on small businesses, and streamline how taxes are collected.
“It is proposed that the state governments share 55 per cent of VAT from 15 per cent. There is a reasonable effort to establish core tax statutes in the bill,” Bamidele said.
The senator representing Bayelsa West, Seriake Dickson, said the discovery of oil in Nigeria did not allow the country to have a good taxation system as a means of revenue.
“I am aware that some issues have been raised and that is legitimate,” he said.
Similarly, the senator representing Borno South, Ali Ndume, expressed reservations over the timing and certain provisions of the bills.
He suggested that with necessary amendments, the bills could be passed “in less than 24 hours if withdrawn and reintroduced.”
Recall that President Tinubu Bola transmitted the four tax reform bills to the National Assembly for consideration on October 3.
Further insight into the bills are; the Nigeria Tax Bill 2024, which is expected 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, which will repeal the Federal Inland Revenue Service (FIRS) Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.
The president stated that the bills would strengthen Nigeria’s fiscal institutions and align with his administration’s broader development goals.
The ICIR reported that stakeholders at the just concluded “Review of Proposed VAT Reform” said the Presidential Committee in charge needs to provide clarity and detailed information on its proposal for proper public engagement and scrutiny.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.