Newscenter Media News Amid opposition from the National Economic Council (NEC) and 19 northern state governors, the Senate on Thursday passed the four tax bills proposed by President Bola Tinubu for second reading through voice votes.
The bills passed a second reading after Opeyemi Bamidele, majority leader of the senate, led a debate on them on Thursday. The proposed legislation seeks to harmonize, coordinate, and resolve disputes arising from revenue administration in Nigeria.
The session saw lawmakers deliberating on the general principles of the tax reform bills.
Earlier, the Senate had gone into a closed-door session to discuss the four bills transmitted by President Tinubu on September 3, 2024, following the recommendations of the Taiwo Oyedele-led Tax Reforms Committee.
While the reforms were generally acknowledged as critical to overhauling Nigeria’s tax system and reducing the tax burden on citizens, Sen. Ali Ndume expressed reservations about the timing and certain provisions of the bill.
He suggested that the reforms, with necessary amendments, could be passed “in less than 24 hours” if withdrawn and reintroduced.
According to Ndume: “Reforms are necessary, I am not against any reforms. My problem is the timing as it is today in Nigeria.
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“One will be at the public hearing and the issue of derivation because the Constitution has to be amended before some of the proposals of the Bill can be affected.
“This bill should be withdrawn, we work on it and submit it after getting the buy-in of the Governors, Traditional Rulers and the NEC.
“I looked at the bill and it contains so many but these two things VAT and Derivation. You negotiate first before we come to take a position.
“It looks attractive but it may not be what it is. If you move a tax burden to the manufacturer he will transfer it to the consumer.
“In the bill, we say a reduction from 30% to 25% which means that the person in Nnewi that is no longer able to make billions, you are charging him with the same person that is just sitting down doing nothing.”
Senate President, Godswill Akpabio after listening to Ndume, as well as presentations by Seriake Dickson and Mohammed Ali Monguno, who stoutly supported the bills, passed them for second reading through voice vote.
By: Babajide Okeowo
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