- President Tinubu has directed the Ministry of Justice and the National Assembly to address ‘genuine concerns’ in the tax reform bills before passage
- The president reiterated that the bills will ensure increased revenue without further burden on citizens
- The tax reform bills have faced objections and criticisms
President Bola Tinubu has directed the Federal Ministry of Justice to work with the National Assembly to ensure that “genuine concerns” associated with the Tax Reform Bills are addressed before they are passed by lawmakers.
Minister of Information and National Orientation Mohammed Idris disclosed this in a statement on Tuesday, December 3.
“In line with the established legislative procedure, the Federal Government welcomes meaningful inputs that can address any grey areas in the bill.
“In this vein, President Tinubu has already directed the Federal Ministry of Justice and relevant officials who worked on the drafts to work closely with the National Assembly to ensure that all genuine concerns have been addressed before the bills are passed,” the statement read.
Tax reform bills will ensure increased revenues
Idris added that the tax reform bills, which have passed second reading at the Senate, will ensure increased revenues for states and local governments while relieving citizens of the tax burden.
He stated, “In all, these reforms will not only facilitate increased revenues (without imposing additional tax burdens on the people), but they will also make it possible for citizens to demand and enjoy greater accountability in the management of public resources at all levels of government.
“President Tinubu and the administration will continue to champion policies that close the loopholes and gaps through which Nigeria’s valuable public resources have been frittered away for decades.”
Details of the tax reform bills
President Tinubu had sent the four tax bills to the National Assembly for approval in October. The bills are the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
The Nigeria Tax Bill 2024 is expected to provide the fiscal framework for taxation in the country, the Tax Administration Bill will provide a legal framework for all taxes in the country and reduce disputes, the Nigeria Revenue Service Establishment Bill will repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill is expected to create a tax tribunal and a tax ombudsman.
The bills seek to review the sharing formula of the Value Added Tax (VAT) to accommodate what each state gets VAT for what it generates within its territory.
They also seek to remove VAT from essential consumption, education, healthcare, transportation, and accommodation to benefit low-income earners.
On Wednesday, November 27, the president’s economic team, which includes the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele; the Chairman of the Federal Inland Revenue Tax, Zacchaeus Adedeji and the Director-General of Budget Office, Tanimu Yakubu, were at the Senate’s plenary to explain the bills.
Oyedele told the lawmakers that the bills aimed to lift the tax burden on 90 per cent of Nigerian workers.
He has often said Nigeria’s tax system is among the most outdated globally and requires urgent reform.
Bills have been greeted with criticisms
Since their initiation, the tax reform bills have been the subject of controversies and criticisms from various quarters. While some are calling for wider consultations before passage, others, like the Afenifere, have endorsed the bills.
During a meeting in October, the Northern Governors Forum said some aspects of the bills, especially the VAT components, are skewed against the interests of the North.
The forum further called on the lawmakers from the region in the National Assembly to reject the bills.
The bills were also challenged by the National Economic Council, which comprises the governors and chaired by the Vice President, Kashim Shettima.
The council asked President Tinubu to withdraw the bills from the National Assembly for further consultations, but the president insisted that any differences should be resolved in parliament.
Senate approves Tinubu’s $2.2 billion loan request to fund 2024 budget deficit
Meanwhile, TheRadar reported that the Senate approved President Bola Tinubu’s loan request of $2.2 billion to partially finance the N9.7 trillion budget deficits for the 2024 fiscal year.
The approval followed the presentation of a report by the Chairman of the Senate Committee on Local and Foreign Debts, Aliyu Wamakko, during plenary on Thursday, November 21.
