The House of Representatives will begin deliberations today on the tax reform bills that President Bola Ahmed Tinubu presented to the National Assembly.
Originally, lawmakers scheduled these bills to overhaul Nigeria’s tax system for debate on November 30, 2024. However, changes in priorities may affect the timeline.
However, lawmakers and governors, especially from the northern region, significantly opposed the discussions, leading to an indefinite postponement.
At the heart of the opposition, northern governors raised concerns about the proposed reforms not aligning with their region’s interests.
A lawmaker from the North-West geopolitical zone, speaking anonymously, confirmed that the House has placed the bills on today’s Order Paper.
This action signals a renewed focus on legislative scrutiny and review.
Despite reports suggesting that northern governors have softened their stance after recent negotiations, lawmakers from the region remain steadfast.
They remain dedicated to protecting their regional interests, actively working to advocate for the needs of their constituents.
During a meeting of the Northern Caucus yesterday, members, including Speaker Abbas Tajudeen and zonal caucus leaders, resolved to examine the bills meticulously.
Their goal is to ensure that all provisions align with the interests of their constituents.
According to a northern lawmaker, the caucus vowed to prevent any harmful provisions from becoming law.
They are determined to uphold their constituents’ welfare throughout the legislative process.
The meeting, chaired by Alhassan Ado Doguwa, included key figures such as Ahmed Idris Wase, Mukhtar Betara, and Sada Soli Jibia.
Their participation underscored the importance of unity and collaboration among northern lawmakers.
Lawmakers emphasized a collective approach to deliberations, underscoring their intent to follow proceedings diligently.
They aim to ensure a thorough review of all provisions before any decisions are made.
In a related development, the Nigeria Governors Forum (NGF) announced a compromise on a contentious issue in the bills. This issue concerns the revenue-sharing formula for Value Added Tax (VAT), which has been a point of contention.
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Following negotiations with the Taiwo Oyedele-led Presidential Committee on Fiscal Policy and Tax Reforms, all 36 state governors endorsed a modified version of the tax reform bills. This endorsement reflects a collaborative effort to address concerns raised during discussions.
The agreement adjusted the initial proposal, reducing the allocation of VAT revenue based on derivation from 60% to 30%.
Now, 50% of the funds will be shared equally among states, while 20%t will be distributed according to population.
This revised formula aims to address the concerns of northern governors and lawmakers who opposed the original allocation framework.
Moreover, their advocacy has been crucial in shaping the final agreement.
Nasarawa State Governor Abdullahi Sule confirmed that the governors will actively seek legislative support for the passage of the bills.
Consequently, they aim to ensure the effective implementation of these revisions in the legislative process.
President Tinubu transmitted four tax reform bills to the National Assembly on September 3, 2024.
This action followed recommendations from the Oyedele-led committee, marking a significant step in the reform process.
The Nigeria Tax Bill 2024 establishes a fiscal framework for taxation.
Additionally, the Tax Administration Bill clarifies tax collection processes.
Moreover, the Nigeria Revenue Service Establishment Bill aims to replace the Federal Inland Revenue Service with a new agency.
Finally, the Joint Revenue Board Establishment Bill introduces a tax tribunal and ombudsman to resolve disputes effectively.
As deliberations resume, all eyes will be on lawmakers to navigate these complex reforms while balancing national priorities with regional interests.
The outcome of these debates will likely shape Nigeria’s fiscal landscape for years to come.
