.Bill not meant to undermine any region, says FG
.As Speaker, Deputy seek support
Jonas Ezieke, Abuja
The House of Representatives on Monday held an Interractive meeting of key stakeholders on Tax Reform Bills with a call on the public to rise in support of the proposed legislation.
It would be recalled that President Bola Ahmed Tinubu had earlier in September 2024 transmitted four tax reform bills to the National Assembly for immediate consideration, following the recommendations of the Presidential Committee on Fiscal and Tax Reforms headed by Taiwo Oyedele for the review of existing tax laws in the Country.
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele further used the interactive session to clarify that the proposed tax reform bills currently before the National Assembly is not designed to target or undermine any region.
He made the clarification during the interactive session on the proposed tax reform bills held at National Assembly, Abuja yesterday.
The four bills have, however, not gained the support of some states governors who had consistently called for immediate withdrawal to make ways for wider consultation.
The Chairman of the Northen Governors Forum and Gombe State Governor Muhammed Inuwa Yahaya has also rejected the derivation-based model for Value Added Tax (VAT) proposed by the reform Bill’s.
But in his presentation during the event, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele explained that the proposed tax reform bills currently at the National Assembly were not designed to target or undermine any state or region of the country.
He further argued that the proposal would only ensure efficiency and give more revenue to states where goods and services are not effectively being utilized.
Citing section Section 40 of the VAT Act, he informed that VAT revenue is allocated 15 per cent to the Federal Government, 50 per cent to the States and FCT, and 35 per cent to Local Governments,
“There is no negative thinking about any region or anything,”
In his remarks at the event, the Speaker House of Representatives, Hon Tajudeen Abbas said the four Bill’s represent critical proposals from the executive to expand Nigeria’s tax base, improve compliance as well as establish sustainable revenue streams for Nigeria national development.
He further spoke on the rationale for the interactive session stressing that it was to provide lawmakers with a comprehensive understanding of the four proposed bills.
He explained further that the expected legislation is designed to deepen Nigerians appreciation for those Bills including it provisions to commence constructive dialogue on controversial areas and build the consensus necessary to produce versions that will align with the interests of the all arms of government along with the sub-national governments and the Nigerian people.
The number four citizen noted that the interactive session will help stakholders to identify areas needing amendment, clarification, or improvement and consider the compatibility of these bills with the 1999 Constitution (as amended) and other extant laws.
“Tax reforms are a cornerstone of our House Legislative Agenda because of their central role in achieving sustainable economic growth and development. In every modern state, taxes are the bedrock of public revenue, providing the resources required to deliver education, healthcare, infrastructure, and security. Yet, Nigeria, despite being Africa’s largest economy, struggles with a tax-to-GDP ratio of just 6 percent—far below the global average and the World Bank’s minimum benchmark of 15 percent for sustainable development”.
Earlier, the Speaker in his welcome address had also informed that the proposed tax reform bills are aim at diversify Nigeria revenue base inorder to promote equity, and foster an enabling environment for investment and innovation adding that as representatives of the people,lawmakers must approach the reforms thoughtfully, understanding their potential implications for every segment of the society.
He however, cautioned that Taxes should be fair, transparent, and justifiable, balancing the need for public revenue with the burdens they impose on individuals and businesses.
Consequently, the Speaker also clear the air over controversies surrounding the four bills stressing that such debates are sometimes healthy and necessary in a democracy as interractive session aims to channel those discussions into productive outcomes.
On his part, the Deputy Speaker, Hon Benjamain Kalu urged for general support to ensure the success of the four important proposed legislation to reform taxation in the country.
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