The Nigerian Supreme Council for Islamic Affairs (NSCIA) has asked the Senate to amend sections of the Tax Reform Bills that conflict with the Shariah law.
In a memorandum submitted to the Senate Committee on Finance, the council argued that any provisions contradicting Islamic legal principles would be unconstitutional and should be removed.
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The memorandum also recommended replacing the term “ecclesiastical” in the bills with “religious” to ensure inclusivity and prevent the perception that some religious groups were excluded.
Additionally, NSCIA urged lawmakers to address all major technical, political, and social concerns from different stakeholders to ensure fairness and nationwide acceptance.
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Despite these concerns, the council supported the passage of the bills.
“Taking all the above into consideration, the Nigerian Supreme Council for Islamic Affairs recommends the passage of the bills. While we appreciate the opportunity to make this submission, the council remains committed to constructive engagement in national policy formulation and legislative reforms,” the memorandum read.
Background and controversy surrounding the bills
The tax reform bills were drafted by the Presidential Committee on Fiscal Policy and Tax Reforms.
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The bills are the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
These proposed laws aim to adjust the Value-Added Tax (VAT) revenue-sharing formula and introduce tax exemptions for Nigerians earning below the minimum wage.
The bills scaled second reading in the Senate last November and referred to the Committee on Finance for further review and public engagement.
The House of Representatives also debated and passed the bills for second reading on 12 January.
Since they were transmitted to the National Assembly on 3 October 2024 by President Bola Tinubu, the bills have generated significant debate, particularly regarding their regional implications.
Lawmakers from the Northern region and the Northern Governors Forum expressed concerns that the VAT component disproportionately benefits some areas over others. The forum then directed the region representatives in the National Assembly to oppose the bills.
Despite the objections, the Nigeria Governors’ Forum (NGF) strongly supported the reforms after engaging with the president’s economic team. It, however, suggested some areas that should be adjusted, particularly the VAT component.
Meanwhile, senators from the South-east indicated the need for further consultations with their governors and stakeholders. South-south senators warned against introducing ethnic or regional biases into the debate.
READ ALSO: Nigeria targets $1trillion economy through tax reform bills Senate Committee chair
The Senate President, Godswill Akpabio, assured that the National Assembly would conduct a thorough review and ensure the passage of bills that benefit the country.
The Senate Committee on Finance had also concluded a two-day public hearing on the bills, and stakeholders who attended overwhelmingly supported them.
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