Tinubu’s tax reform bills set for public hearing
The House of Representatives on Wednesday passed the tax reform bills for second reading following an extensive and robust debate on the general principles of the legislation by lawmakers.
The lawmakers passed the bill for second reading after it was put to a voice vote by the Speaker, Abbas Tajudeen.
This means that the House will hold public hearing on the document to get the input of Nigerians before further legislative action.
The House had earlier consolidated the four tax reform bills sent to the House by President Bola Ahmed Tinubu last year into one before beginning the debate on the general principles.
The consolidation of the bills followed a motion by the House Leader, Prof Julius Ihonvbere, following the leave granted by the Speaker, Abbas Tajudeen.
The bills consolidated include: “A Bill For an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States and Local Governments; Prescribe the Powers and Functions of Tax Authorities, and for Related Matters (HB.1756); A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007 and Enact the Nigeria Revenue Service (Establishment) Bill to Establish Nigeria Revenue Service, charged with Powers of Assessment, Collection of, and Accounting for Revenue Accruable to the Government of the Federation and for Related Matters (HB.1757).
Others include: “A Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombud, for the Harmonisation, Coordination and Settlement of Disputes arising from Revenue Administration in Nigeria and for Related Matters (HB.1758), and A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks Relating to Taxation and Enact the Nigeria Tax Act to Provide For Taxation of Income, Transactions and Instruments, and for Related Matters (HB.1759).
Ihonvbere led the debate on the consolidated tax reform, stressing the necessity of overhauling the country’s tax system which he described as obsolete.
Ihonvbere thanked the Nigerian Governors’ Forum for their valuable inputs in retooling the aspect of the VAT sharing formula which helped in dousing the earlier concerns that trailed the tax reform bills.
He said the bill aims to modernise the tax reform system, empower citizens and enhance inclusive growth.
Ihonvbere argued that the tax reforms will benefit Nigerians, saying it will harmonise multiple taxes, reduce PAYE, has zero VAT on food, healthcare, education, and provides incentives for low income employees.
In their contributions to the debate on the general principles of the bills, majority of the lawmakers spoke in support of passage of the bill for second reading.
Rep Bamidele Salam (PDP, Osun), expressed support the bill, saying, it will ensure more resources accrue to the subnational government to enable them provide needed development.
He also described the current Nigerian tax administration system as obsolete and duplicatory, which has led to stunted growth and discouraged investors.
Salam, however add that the paramount consideration in tax reforms should be on the wellbeing and welfare of the Nigerian people.
In his contribution, Rep Sada Soli, said the issue of fairness and reasonability must be put into consideration in the enactment of the tax reforms.
He raised concerns over several inconsistencies in a number of the clauses in the tax reform bills which he said, the committee working on the bills must look into and remove.
Soli also expressed worries over the ambiguity in some clauses of the bills, which he said, will make the legislation open to abuse and misinterpretation.
Other lawmakers who spoke include George Odinobi, Makki Yalleman, Cyril Hart, Igariwey Iduma and Mariam Onuoha, among others.
