Ndume asks Tinubu to suspend implementation of new tax laws

Borno South Senator Ali Ndume has urged President Bola Tinubu to suspend the implementation of the newly passed tax laws, scheduled to take effect in January 2026.

Mr Ndume, a member of the All Progressives Congress (APC), as the president, said the call to suspend the tax laws became necessary due to the controversy surrounding the laws, particularly claims that the version passed by the National Assembly differs from what was gazetted by the federal government.

In a statement on Wednesday, the senator requested that President Tinubu establish an ad hoc committee to investigate the allegations, pending the outcome of the probe, while putting the implementation of the laws on hold.

“With the controversy surrounding it, the president should constitute a team to verify the veracity of the claim and act accordingly. As a responsive leader that he has always been, he should look at it to find out if the copy that was signed, whether the claim of alterations was genuine, so that he will do the needful to bring the controversy to rest. If not, the controversy will continue. That is to say the tax law will not be implemented, because you can’t build on nothing.

Stay Ahead with Premium Times

Add as a preferred source on Google

“So, Mr President should suspend the implementation until the issues are resolved because so many civil society organisations, the Arewa Community, the Nigerian Bar Association are saying that he should withdraw the Tax Law and investigate the allegation of forgery,” he said.

Mr Ndume urged President Tinubu to investigate the allegations surrounding the controversy on the tax laws.

“Therefore, Mr President should get to the root of the allegation of forgery. The small committee that will be set up should look into it while the House of Representatives does its own.”

Controversy surrounding the tax laws

The Presidential Committee drafted the tax reform bills on Fiscal Policy and Tax Reforms. 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 laws aim to adjust the Value-Added Tax (VAT) revenue-sharing formula and introduce tax exemptions for Nigerians earning below the minimum wage.

The controversy surrounding the tax reform laws originated from two major issues: alleged discrepancies between the versions passed by the National Assembly and the copies gazetted by the federal government, and concerns over the regional implications of key provisions, particularly the Value Added Tax (VAT) revenue-sharing formula.

During the plenary session on 17 December, a member of the House of Representatives, Abdulsamad Dasuki, drew the chamber’s attention to the tax laws, alleging that the versions passed by the National Assembly differ from the copies gazetted and made available to the public.

Mr Dasuki said he obtained copies of both the bills passed by the National Assembly and the gazetted versions, and discovered discrepancies between them.

In response, the House of Representatives constituted a seven-member committee to investigate the alleged inconsistencies.

Since then, the issue has generated widespread public criticism, with many stakeholders calling for the withdrawal of the tax laws pending clarification.

The Nigerian Bar Association (NBA) on Tuesday demanded the withdrawal of the tax bills, arguing that any law whose authenticity is in doubt should not be implemented until all discrepancies are thoroughly investigated.

The Arewa Consultative Forum and other northern interest groups have also expressed opposition to aspects of the reforms, contending that the proposed VAT-sharing formula could disadvantage states with lower economic activity, many of which are in the North.

These concerns were initially raised by members of the Northern Governors Forum, which directed lawmakers from the region to oppose the bills during legislative deliberations. Some northern lawmakers, including Mr Ndume, had argued that the reforms could worsen regional inequality if implemented.

READ ALSO: NBA urges probe into controversial Tax reform laws

The federal government, however, maintained that the reforms were aimed at improving revenue generation, simplifying tax administration, and promoting fiscal fairness, insisting that due legislative process was followed.

PREMIUM TIMES reports that the Senate initially debated and passed the tax reform bills on 7 and 8 May, with some provisions differing from those approved by the House of Representatives. These discrepancies necessitated the formation of a conference committee to align the content and recommendations of the bills.

Later in May, the Senate adopted the harmonised version, signalling a major step toward the enactment of the new fiscal framework. The bills have been assented to by President Tinubu and are scheduled to be implemented from 1January 2026.