Senate to hold public hearing on tax reform bills

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The Senate Committee on Finance has scheduled a two-day public hearing on the tax reform bills proposed by President Bola Tinubu.

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The hearing would hold on Monday 24 and Tuesday 25, February.

Chairperson of the Committee, Sani Musa, said this on Wednesday during a press briefing in Abuja.

Mr Musa, the senator representing Niger East Senatorial District, noted that the committee aims to address concerns and review each of the proposed bills by taking two of them per day.

“We are starting the public hearing on Monday the 24th of February and the second day will be the 25th and we intend to take on two of the bills on each day of this session,” he said.

Controversy on the bills

The bills, drafted by the Presidential Committee on Fiscal Policy and Tax Reforms are the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

President Tinubu transmitted them to the National Assembly on 3 October, 2024.

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The proposed legislations 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 at the Senate in November and was 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.

The proposed reforms generated significant debate among lawmakers and the public, particularly regarding their regional implications.

Lawmakers from the Northern region, including members of the Northern Governors Forum, expressed concerns over the VAT component with the argument that it disproportionately benefits certain regions over others.

Consequently, the forum directed its representatives in the National Assembly to reject the bills.

Despite these objections, the Nigeria Governors’ Forum (NGF) expressed strong support for the tax reforms, following a meeting with the president’s economic team earlier this year.

It, however, proposed some adjustment in the bills.

Meanwhile, senators from the South-east had said that they needed further consultations with their governors and stakeholders before taking a final position. 

South-south senators, on the other hand, warned against introducing ethnic or regional sentiments into the debate.

On his part, the Senate President, Godswill Akpabio, assured that the National Assembly will diligently review the bills and ensure their passage for the benefit of the country. He emphasised that the legislative process will be fair and inclusive.

Invitees to the hearing

Mr Musa confirmed that several key officials and stakeholders have been invited to make input during the public hearing.

He listed the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Trade and Investment, Jumoke Oduwole; Attorney General of the Federation, Lateef Fagbemi, and Minister of Petroleum Resources, Heineken Lokpobiri, among those who have been invited to the hearing.

“We have invited a lot of agencies, just to mention a few of those agencies that we believe that they are key to this are like the Federal Minister of Finance, the Coordinating Minister of Economy. We invited the Federal Minister of Trade and Investment.

“We have invited the Attorney General of the Federation. We have also invited the Minister of Petroleum because you know there’s this issue of cash costs, like the revenues, the royalties coming from the oil and gas sectors,’ he said.

The senator also named Chairman of the Federal Inland Revenue Service (FIRS), Zaach Adedeji and Statistician General of the Federation, Semiu Adeniran, as some of those invited.

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“We are inviting the Chairman of the Federal Inland Revenue Services. We are also inviting the Statistician General of Nigeria. That’s the National Bureau for Statistics, so that he will be able to come and give us his own submission. We need it because we need to know generally about the economy, not just reading or getting it from the news, what is happening practically out there.”

Mr Musa emphasised that the hearing would provide the opportunity to address the contentious areas of the bills and refine them to ensure a balanced and effective fiscal policy framework.

He reiterated President Tinubu’s stance that the legislative process should be independent and free from executive interference.

He said, “And I believe that the public hearing is going to go on smoothly, and wherever the gray areas are. Mr President has said it times without number that he’s not going to interfere. It is our duty as legislators to do the needful for the good of this country.

“We are all representatives of different tribes, religions, and geographies, but we are Nigerians. And what we will work towards giving Nigeria are bills, laws, legislation that will put us on track economically. And by the grace of God, I think we will succeed.”