The South-East Senate Caucus in Nigeria on Monday made a pivotal call for broader consultations regarding the Tax Reform Bills currently under consideration by the National Assembly. This move comes amidst growing debates and concerns about the potential impacts of these bills on various stakeholders across the country.
The caucus, led by Senator Enyinnaya Abaribe from Abia South, emphasized the need for an inclusive review process to ensure that the proposed tax reforms are equitable and beneficial for all regions.
The Tax Reform Bills, which include the Nigeria Tax Bill 2024, the Tax Administration Bill, and the Nigeria Revenue Service Establishment Bill, were transmitted to the National Assembly by President Bola Tinubu on October 3, 2024.
These bills aim to introduce a new fiscal framework for taxation, provide clearer tax administration laws, and establish the Nigeria Revenue Service by repealing the Federal Inland Revenue Service Act. Additionally, the Joint Revenue Board Establishment Bill seeks to create a tax tribunal and a tax ombudsman.
Despite the presidency and the South-South caucus in the Senate advocating for swift consideration of the bills, other stakeholders, such as the Nigeria Governors’ Forum (NGF), Northern Senators, and the Arewa Consultative Forum, have called for wider consultations before proceeding.
During a National Economic Council (NEC) meeting on the same day the bills were sent to the National Assembly, it was resolved that the bills should be withdrawn for further consultation. However, President Tinubu later emphasized on October 31, 2024, that the bills should continue through the required legislative processes, including public hearings to allow Nigerians to provide feedback.
Senator Abaribe clarified that the South-East senators are not opposed to the bills but are advocating for more engagement with various groups and stakeholders before the bills are fully considered and potentially passed by both chambers of the National Assembly.
He stated, "As much as the entire South East Senators are not against the Tax Reform Bills before both chambers of the National Assembly, we want wider consultations to be carried out on them."
The South-East zone, comprising Abia, Anambra, Ebonyi, Enugu, and Imo states, has raised concerns about the bills' potential impacts and is calling for a more inclusive review process. The caucus believes that consultations should include engagement with constituents across the 15 Senatorial districts in the zone, as well as with state governments and other key stakeholders.
"We have read through the bills and want to share our knowledge with other stakeholders from the South East Zone for a more equitable framework in the bills that will eventually be passed," added Abaribe.
The call for wider consultations is not limited to the South-East region. Various stakeholders across Nigeria, including governors, traditional rulers, civil society organizations, and some federal lawmakers, have expressed reservations about the bills. They argue that the proposed reforms may not be in the collective interest of the country and could disproportionately affect certain regions or demographics.
In response to these concerns, the South-East Senate Caucus is pushing for a more transparent and participatory legislative process. They believe that by involving a broader range of voices in the discussion, the final version of the tax reform bills will be more balanced and reflective of the diverse needs of Nigeria's population.
The Tax Reform Bills are a result of recommendations from the Presidential Committee on Fiscal and Tax Reforms, chaired by Taiwo Oyedele. The committee was tasked with reviewing existing tax laws and proposing changes to improve the efficiency and fairness of Nigeria's tax system.
The bills aim to simplify the tax code, broaden the tax base, and eliminate many tax shelters and preferences, with the intention of being revenue-neutral while shifting some of the tax burden from individuals to businesses.
Comments