The Senate on Thursday passed to third reading the contentious tax reform bills presented by President Bola Ahmed Tinubu for consideration and passage.
The passage followed the presentation of a report by the Chairman of the Senate Committee on Finance, detailing the purpose of the four bills—aimed at reviewing and improving existing tax laws for the benefit of Nigerians, contrary to widespread public misperceptions.
The four bills include the Nigerian Revenue Service Bill, the Nigerian Joint Tax Board Bill, the Nigerian Tax Administration Bill, and the Nigerian Tax Bill.
According to the Chairman of the Senate Committee on Finance, the committee gave thorough consideration to the bills in the interest of economic development.
Briefing newsmen shortly after the passage, the Committee Chairman, Senator Muhammad Sani Musa, stated that the committee’s review of the tax reform bills aimed to ensure that Nigeria’s tax laws align with international standards and those of peer countries to promote economic sustainability.
Senator Sani Musa added that the objective was to streamline the Tax administration in Nigeria to ensure the operations and administration conform with the international best practices and meet the GDP ratio of other African countries such as South Africa and Kenya
The chairman assured that during their consideration at a committee level after public hearing with all relevant stakeholders, including Ulamas from both religions to make sure deliberations and opinions of all are taken into consideration
He explained that some of the Tax laws in Nigeria are not in conformity with the current realities hence the need to be reviewed and make them in line with present situation
He said all the clauses were thoroughly examined during consideration. The committee objectively addressed issues such as derivation, Value Added Tax (VAT), and development levy, while also taking into account the security situation in the country when allocating percentages from the collected revenues accruing to the government treasury.
In this regard, he explained that the committee distributed the revenue percentages to government agencies such as NITDA, NASENI, NIDFUND, TETFund, as well as to security agencies. This was aimed at supporting social intervention programs for Nigerians and strengthening security personnel in the fight against criminal activities across the country.
Musa assured that all the gray areas have been removed in the bills especially the issue of tax on inheritance which was vehemently been criticised by many Nigerians.
However, contributing during consideration of the report the Deputy senate president Barau Jibrin congratulated the entire Senate and in particular the Committee on Finance and the special Elders Committee for the wisdom and leadership that has been shown in these bills.
He said Initially, there were disagreements and rancors here and there. But the Senate, standing on its position as the highest assembly in the land, decided to establish Elders Special Committee, to look at all those areas of contention and hear the views of religious leaders, regional organizations and other stakeholders.
Now, thank God, the committee also in its wisdom sat with all, had a very robust public hearing and got to where we are now. And thank God, all these areas have been resolved.
Similarly the Senate President Godswil Akpabio in his remarks congratulated the committee on finance for a good job on the bills and the entire members of the 10th Senate, consultants and all stakeholders for a meticulous consideration of clause by clause of the bills
The Senate President believed that when pass in to law by president Bola Ahmed Tinubu would increase revenue generation in the country and in turn brings developmental activities fir sustainable economic development
Akpabio further assured that this will serve as good legacy for future Tax generation and modernise way of collecting and administrating taxes in the country and finally constituted a conference committee headed by senator Yahya Abdullahi to harmonize with the House to resolve all the gray areas before forwarding to president Bola Ahmed Tinubu for assent.
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