By Abigail Philip David
The Senate has temporarily halted deliberations on the contentious Tax Reform Bills and directed its Committee on Finance to suspend public hearings until public concerns are addressed. This decision, announced during Wednesday’s plenary presided over by Deputy Senate President Jibrin Barau, follows mounting opposition to the proposed legislation.
To resolve the issues, the Senate has constituted a special committee to engage with the executive arm of government and collaborate on amendments to the Tax Reform Bills, which include the Joint Revenue Board of Nigeria (Establishment) Bill 2024, Nigeria Revenue Service (Establishment) Bill 2024, and Nigeria Tax Bill 2024.
**Opposition and Controversy**
The proposed bills have faced strong backlash, particularly from northern governors and lawmakers, who argue that the reforms are inequitable. The National Economic Council (NEC), chaired by Vice President Kashim Shettima, has also recommended withdrawing the bills for further consultations.
Oyo State Governor Seyi Makinde explained the NEC’s position, noting that some regions feel disadvantaged by provisions in the bills, particularly concerning the Value Added Tax (VAT) derivation formula.
Borno State Governor Prof. Babagana Zulum criticized the process, accusing the Federal Government of rushing the legislation. He argued that certain clauses disproportionately favor states like Lagos and Rivers, urging deeper consultations to address misconceptions.
Senate Engages Stakeholders
In response to the controversies, the Senate invited key members of the President’s economic team, including Taiwo Oyedele, Chair of the Presidential Committee on Fiscal Policy and Tax Reforms, and Zacchaeus Adedeji, Chair of the Federal Inland Revenue Service, to clarify the bills during plenary.
While the bills were passed for a second reading and transmitted to the Senate Committee on Finance, Barau emphasized the importance of collaboration. “The Senate has always been a stabilizing force, providing solutions to national challenges. We are setting aside politics and regionalism to ensure these bills align with the nation’s unity and progress,” he said.
Meeting with Attorney General
The Senate committee is scheduled to meet today with Attorney General of the Federation (AGF) and Minister of Justice Lateef Fagbemi to resolve contentious aspects of the bills. However, sources indicate the AGF may be unavailable as he is reportedly returning from an overseas trip. If unavailable, the committee plans to meet among themselves to strategize.
Oyedele Defends Urgency of Reforms
Taiwo Oyedele, chair of the fiscal reforms committee, defended the need for swift action on the bills, citing Nigeria’s economic challenges. During an interview with *Arise News*, he highlighted the impact of high poverty rates, inflation, and multiple taxation burdens on Nigerians.
“Our people are in multidimensional poverty. Small businesses face over 60 official levies and countless unofficial taxes. This is an emergency, and we must respond urgently, just as countries responded to COVID-19,” Oyedele argued.
He dismissed claims of rushing the bills, explaining that they have been under review for over a year, with significant engagement at various levels, including state governors and technical advisors.
Despite the controversies, Oyedele urged stakeholders to finalize the bills to provide much-needed relief to Nigerians, adding, “We are happy to engage more, but this attention to the issue creates an opportunity for further dialogue and consensus.”
The Senate remains committed to resolving the disputes and ensuring the tax reforms align with national unity and economic growth.
