Senate halts tax reform bills amid public concerns

Estimated reading time: 3 minutes

The Nigerian Senate has temporarily suspended progress on the tax reform bills currently under its consideration, pending a resolution to widespread public agitation.

This decision includes directing the Senate Committee on Finance to pause public hearings on the matter.

A special committee has also been established to collaborate with the government’s executive arm to address contentious issues surrounding the bills.

Deputy Senate President Jibrin Barau, presiding over the plenary on Wednesday, revealed these developments.

He emphasized the Senate’s role as a stabilizing force during times of national discord, stating, “The Senate comprises men and women of wisdom and experience, entrusted to legislate for the peace, stability, and development of the nation.”

The tax reform bills under scrutiny include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; the Nigeria Revenue Service (Establishment) Bill, 2024; and the Nigeria Tax Bill, 2024.

ALSO READ

• Nigerian Govt mulls stoppage of 190 taxes on businesses
• Oil marketers seek removal of VAT on diesel importation
• Wike hails Supreme Court for stopping FG, CBN on implementing old naira deadline
• Economy is undergoing reform – Tinubu
• Tinubu calls for legislative review of proposed Tax Reform Bills

Since their introduction to the National Assembly, these bills have sparked significant controversy. Notably, Northern governors have strongly opposed them, labeling them as anti-democratic.

Amid mounting criticism, the National Economic Council has called for the withdrawal of the bills for broader consultations. Senator Shehu Buba (APC, Bauchi South), in an interview with the BBC Hausa Service, noted that Northern Senators had agreed to recall the bills.

“These bills are complex and require thorough review by tax policy experts,” he said, adding that Northern lawmakers are particularly concerned about the proposed derivation formula for value-added tax (VAT), which they believe would disproportionately affect their states.

The Deputy Senate President disclosed that consultations would continue on Thursday at the National Assembly, with discussions aimed at resolving the contentious issues.

Barau reaffirmed the Senate’s commitment to setting aside political, ethnic, and regional biases, stating, “In collaboration with the Executive Arm of Government, we agreed to establish a forum to identify and address contentious areas to ensure national unity and progress.”

Barau also emphasized the importance of engaging the judiciary in resolving the disputes, noting that the Attorney General of the Federation would be actively involved in discussions to address areas of disagreement. A meeting between the Senate committee and the Attorney General is scheduled to take place.

The special committee includes Senate leadership and other key members such as Adamu Aliero (PDP, Kebbi Central), Orji Kalu (APC, Abia North), Seriake Dickson (PDP, Bayelsa West), Titus Zam (Benue South), Abdullahi Yahaya (Kebbi), Adeola Olamilekan (APC, Ogun West), Sani Musa (APC, Niger East), and Adetokunbo Abiru (APC, Lagos East).

To avoid further exacerbating national challenges, the Senate Committee on Finance has been instructed to halt all related activities until a resolution is reached.