Senate passes Tinubu’s tax reform bills for second reading

The Nigerian Senate on Thursday passed the four tax bills for second reading through voice votes.

This is coming after President Bola Tinubu transmitted the four tax reform bills to the National Assembly for consideration on October 3.

The bills advanced following a debate led by Opeyemi Bamidele, the Senate Majority Leader, on Thursday.

Recall that the bills generated controversy with the Northern governors and other stakeholders, resisting the tax reforms.

Moreover, worried by the situation, Mr Tinubu explained that the bills were not targeted at any particular region but to develop the country.

In a dramatic session on Wednesday in the Senate, the tax reform bills sparked anger and a shouting match among lawmakers.

The controversy arose when the bills were introduced for debate without being listed on the Order Paper, the official agenda for the day’s plenary.

While the reforms were generally acknowledged as critical to overhauling Nigeria’s tax system and reducing the tax burden on citizens, Senator Ali Ndume expressed reservations about the timing and certain provisions of the bill.

He suggested that the reforms, with necessary amendments, could be passed “in less than 24 hours” if withdrawn and reintroduced.

However, the Chief Whip strongly opposed this view, stressing the importance of advancing the bill to the public hearing stage.

“The bill should scale second reading and undergo thorough examination during the public hearing. Afterward, it can be subjected to clause-by-clause consideration.”

According to Ndume, “Reforms are necessary, I am not against any reforms. My problem is the timing as it is today in Nigeria as we say I want to add to what Senator Seraike said.

“One will be at the public hearing and the issue of derivation because the Constitution has to be amended before some of the proposals of the Bill can be affected.

“This bill should be withdrawn, we work on it and submit it after getting the buy-in of the Governors, Traditional Rulers and the NEC.

“I looked at the bill and it contains so many but these two things VAT and Derivation. You negotiate first before we come to take a position.

“It looks attractive but it may not be what it is. If you move a tax burden to the manufacturer he will transfer it to the consumer.

“In the bill, we say a reduction from 30% to 25% which means that the person in Nnewi that is no longer able to make Billions, you are charging him with the same person that is just sitting down doing Nothing.”

But despite the contentious atmosphere, the Senate’s decision to progress the bills marks a significant step in President Tinubu’s tax reform agenda.

The proposed reforms aim to address revenue challenges but have also raised questions about transparency and public engagement in the legislative process.

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