Tax Reform Bills Passes Second Reading At Senate

The Senate on Thursday passed for the second reading the four contentious tax reform bills submitted by President Bola Ahmed Tinubu.

This action came after a primary debate on the bills, which was introduced by Senate Leader Senator Opeyemi Bamidele (APC, Ekiti Central) and subsequently discussed by senators during the plenary session.

It is noteworthy that several high-ranking officials from Tinubu’s administration presented comprehensive explanations regarding the bills before the Senate yesterday.

Previously, governors from the northern region, along with traditional leaders and the Northern Elders Forum, expressed their opposition to the bills, asserting that the proposed legislation does not serve the nation’s best interests.
However, Bamidele during the debate said the bills would simplify the tax landscape, reduce the burden on small businesses, and streamline how taxes are collected.

He said,“It will eliminate double taxation. In the area of tax exemption of the salaries below the minimum wage.

“It is proposed that the state governments share 55 percent of VAT from 15 percent. There is a reasonable effort to establish core tax statutes in the bill.”

The lawmaker representing Bayelsa west, Seriake Dickson, said the discovery of oil in Nigeria did not allow the country have a good taxation system as a means of revenue.

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He said, “I am aware that some issues have been raised and that is legitimate.

“There is nothing wrong in saying that phone calls are made in Sokoto are calculated are paid to those states. We should ensure that this is transparent.”

Also speaking, Ali Ndume, senator representing Borno south, said the bills should be stood down for further legislative work.

He said, “Reforms are necessary if we have to move forward. My problem is number one is timing. Number two, the issue of derivation and VAT.”

“The constitution has to be amended for some of these provisions to be effected.”

Countering Ndume’s position, Tahir Monguno, chief whip, said the bills should not be withdrawn and that changes could be made during the public hearing on them.

He said, “These bills will reduce the tax burden on Nigerians.”

The bill were passed after Senate President Godswill Akpabio put them to a vote.