The Senate has reiterated its commitment to ensuring that the valuable views of stakeholders are considered in passing the tax reform bills currently before the National Assembly.
Chairman of the Senate Finance Committee, Senator Muhammad Sani Musa, gave this assurance while speaking with newsmen in Abuja during the ongoing public hearing on the four tax bills.
He appealed to Nigerians to remain patient and calm as the tax reforms were designed to benefit everyone, and that the Senate would enact tax legislation aligned with international best practices.
However, during the second day session of the hearing, majority of the Agencies, organizations and all the stakeholders unanimously believed that generally there is need for the reforms.
Dr. Yarima Ingama, who represented the Arewa Consultative Forum, stated in their submission before the committee that the proposed tax reforms are appropriate, considering the current realities in Nigeria, where many people do not pay taxes.
He emphasized that these reforms are crucial and necessary to address shortcomings in the tax system in line with global best practices. However, he rejected the idea of increasing VAT, warning that it could lead to double taxation.
Dr. Yarima argued that many Nigerians, especially those with large businesses, are not paying the required taxes due to poor data collection on business activities, particularly in the informal sector.
He maintained that the Nigerian economy operates largely informally, making it difficult to collect accurate taxes for economic stability.
Dr Yerima Ingama also emphasized that educational institutions, such as TETFUND and others, should be allowed to continue to flourish.
Similarly, the Centre for the Promotion of Sharia in Nigeria, led by Dr. Saidu Ahmad Dukawa, acknowledged the importance of the tax reform but stressed that extensive reviews are needed to ensure the laws are beneficial to Nigerians.
Dr. Saidu, in their submission, noted that they rejected the idea of taxing inheritance and opposed the creation of a single agency with excessive powers to collect taxes.
He emphasized the need for reforms to limit the powers of the Federal Inland Revenue Service (FIRS).
Dukawa also stated that they opposed the increase in VAT, calling for its reduction to provide relief to Nigerians.
He added that institutions such as TETFUND, NASENI, and SMEDAN should be allowed to continue supporting the development of the educational system, which, he noted, is on the verge of collapse without their assistance.
He then urged Nigerians to exercise patience but advised lawmakers to act in the best interest of the country by considering the meaningful contributions of stakeholders and formulating effective tax laws that would greatly benefit the nation’s economy and ensure sustainable economic growth.
Also, in their submission, the Trade Union Congress (TUC) expressed support for the reforms but outrightly rejected both the proposed increase in Value Added Tax (VAT) and the earlier suggested sharing formula, which proposed that the initial place of a company’s registration should receive the largest share of VAT collected.
Cov/Bashir M
