.Public hearing ‘ll provide Nigerians platform to air their views–Akpabio
Ignatius Okorocha, Abuja
Barely 24 hours after the interactive session of the members of the Presidential Committee on Fiscal Policy and Tax Reform with the senators, the Senate on Thursday passed for second reading Tax Reform Bills before the National Assembly
Senate President, Godswill Akpabio who had thrown his weight behind the bill alongside Senate Leader, Opeyemi Bamidele, former Bayelsa State Governor, Senator Seriake Dickson and Senator Tahir Mongunu however said he will not call for vote on the bill until he heard from Senator Ali Ndume.
Senator Ndume in his contribution to the debate said there is no doubt that reform is necessary for development to take place and for a country to move forward.
“I am not against reforms and I am not against this tax reform but let it be on record that I said that my problem with the bill is number one, the timing, number two; the issue of derivation makes the reforms contagious, contaminated and contradictory because the constitution has to be amended in order for some of this proposals to be effected.
“As the Senate has decided, we should not throw away the baby with the birth water. I would have preferred we remove the baby and throw away the water first and that is to go with what the Governors and NEC propose that this bills should be withdrawn first for us to work on it and then submit it to the National Assembly again after getting the buying of the Governor, NEC and even our traditional rulers. Yes, the bills possess so many good things but these two issues of derivation and VAT should be addressed at the public session,” he said.
However, the Chief Whip of the Senate, Senator Tahir Mongunu immediately opposed the submission by senator Ndume saying it will violate the rules of the Senate which was drawn from the Constitution of the Federal Republic of Nigeria.
“I beg to disagree with you that this bills should be withdrawn first and consultations should be made to the Nigerian Governors Forum and traditional rulers. We have our procedures which is clearly and unambiguously stated in our rules book for the purpose of lawmaking and the constitution in a very clear manner gave us the power to regulate our proceedings in section 60.
“Pursuant to section 60 of 1999 constitution as amended we gave these rules to ourselves in order to guide our proceedings and the process of lawmaking is very clear and unambiguous that after second reading it will now be transmitted to the committee for public hearing.
“In the course of the public hearing, Nigerians from all walks of life including the Governors and traditional rulers could come and ventilate their opinions before the public hearing so that our committee could look at various opinions, aggregate it and then bring it for clause by clause consideration.
“So, this procedure that senator Ndume has suggested with all due respect is foreign to the process of legislation. It is purely academic and should not be considered,” he said.
On his contribution in support of the bills, Senator Mongunu said the bills as propose will remove the tax burden on Nigerians as electricity and medical services are exempted from VAT. “Similarly, people that are not earning more than the national minimum wage are exempted from PAYE tax,”
Earlier in his lead debate the Leader of the Senate, Senator Opeyemi Bamidele said the Nigeria’s tax reforms bill is a significant move to overhaul the country’s tax system.
According to him, the bills aim to simplify the tax landscape, reduce the burden on small business and streamline how taxes are collected.
“In broad terms, the four Bills seeks to ensure uniformity in tax revenue administration in Nigeria in accordance with the provisions of the Constitution, eliminate the incidence of double taxation across the country, deploy taxation as a tool to encourage private sector investments in critical industries and boost individual disposal incomes through targeted tax exemptions as captured in the various bills.
“In the area of tax exemptions, there is a proposal to exempt those whose salaries are not more than the minimum wage from P.A.Y.E deductions while small businesses with annual turnover of N50, 000,000 or less are equally exempted from payment of taxes. Similarly, there is a proposed huge reduction in company income tax from the current 30% to 25% by 2026.
“As part of deliberate attempt to curtail the incidence of double taxation and multiplicity of taxes and levies, multiple taxes hitherto paid by companies under various tax heads namely 2.5% education tax, 0.25% NASENI tax have been harmonized into a development levy of 2% which by 2030 will be applied to fund the newly established student loan scheme which will benefit many Nigerian youths.
“Furthermore, unlike what is obtained under the existing tax regime whereby the Federal Government takes a lion share of VAT revenues, it is proposed that the sharing formula should allow state government share 55% of VAT revenue from the current 15% to 10% sharing formula.
“However, local governments share of VAT revenue remains unaffected. Relatedly, basic items consumed by Nigerian households such as ‘food items, medical services and pharmaceuticals, educational fees, electricity etc are exempted from VAT.
“Again, as part of efforts to ease the administration of income taxes and levies across the Federation, there is a reasonable effort made to consolidate core tax statutes and related tax legislations,” he said.
In his remarks, President of the Senate Godswill Akpabio accordingly passed the bills for second reading through voice votes .
He therefore mandated Senate committee on Finance , to organise Public hearing on the bill for inputs from those against the bills like the Governors’s forum , National Economic Council ( NEC ) , Northern Elders ‘ Forum ( NEF ) etc and report back within six weeks .
Tax Reform Bill: Invitation of Experts By NASS In Order – Akpabio
President of the Senate, Godswill Akpabio, has said that the National Assembly did the right thing, by inviting tax experts into the chambers to brief lawmakers on the nitty-gritty of the proposed tax reform bill.
He also stated that after listening to the professionals, lawmakers and even members of the public, who watched the submissions of the experts, would have seen the need for the bill to be supported.
Akpabio spoke while receiving in courtesy, the leadership of the Association of Nigeria Delta Monarchs of Nigeria (ANDMON), led by His Royal Majesty, Captain Okurakpot in his office on Wednesday.
A statement by the Special Assistant to the President of the Senate on Media, Mr Jackson Udom, quoted Akpabio saying during the visit,” we had some contentious bills that the public seem not to understand. We felt we can’t go into them unless we do proper education of the people. I want to thank the Deputy President of the Senate, Jibrin Barau, who presided over the hearing from experts today on the floor of the Senate.
“I also thank the Speaker of the House of Representatives, Tajudeen Abass for doing same last week, by inviting experts to brief them on the tax reforms and the way forward on tax administration in the country. I believe that after today’s session, those who had some misgivings about the bills will support it.”
Speaking further, Akpabio said, “I thank our royal fathers for coming here to see what we are doing to make Nigeria a better place for all of us. I also thank you for using your positions and influence to maintain peace in the Niger Delta region, which has equally led to increase in oil production.
“Before now, our inability to meet up with OPEC quota was largely due to militancy in the area, which also led to oil producing companies leaving the region after making a lot of profits. This should not be allowed to continue again.
According to Akpabio, ” there is therefore the need for concrete policies to be put in place to guard against oil pollution and environmental degradation by oil companies in future areas of oil exploration.
“Government is very committed to the clean up of Ogoniland and completion of the East-West road for the benefit of the people of the Niger Delta region,” he stated
Earlier in his speech, the leader of the Association, Captain Okurakpot, thanked Akpabio for receiving them saying, “we thank you and your colleagues for receiving us. We are here to declare our support for your leadership of the National Assembly and to also tell you that we are happy and well pleased with your achievements as the Senate President. Meeting you today has afforded us the opportunity to rub minds with the Federal Government through your office.
” We want us to be seen as partners in progress in tackling insecurity in the oil producing area, through collaborations in the Petroleum sector, which would ensure employment opportunities for our teeming youths, thereby stopping them from criminal activities.
“As an association with offshore connections and sponsorships, we are well positioned to assist the government in the area of oil production, solar and wind electrical installations, intended to maintain peace in the oil producing region because government cannot do everything for its citizens.”
