The issue over the tax reform bills currently before the National Assembly has divided the Senate’s northern caucus, with some senators from the North supporting the bills.
The development is a complete contrast to the scenario a few days ago when the majority of northern members in the Red Chamber rejected the contentious proposals.
The tax reform bills, which include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; the Nigeria Revenue Service (Establishment) Bill, 2024; the Nigeria Revenue Service (Establishment) Bill, 2024; and the Nigeria Tax Bill, 2024, have sparked debate since their introduction in the National Assembly.
On October 3, President Bola Tinubu sent four executive legislations to the National Assembly for consideration, intending to implement significant tax reforms.
Rejecting the tax reform bills, the northern governors said they were anti-democratic.
Following this, they were asked to be removed for further deliberations by Nigeria’s highest economic advisory body, the National Economic Council.
After speaking with the president’s economic team, however, the Senate approved the legislation for a second reading and sent it to the Senate Committee on Finance, which will provide a report in six weeks.
The governor of Borno State, Prof. Babagana Zulum, attacked the legislation in an interview after they were passed, saying it would destroy the economy of the north.
Senator Shehu Buba (APC, Bauchi South) stated that northern senators had decided to recall the bills during the dispute in an interview with the British Broadcasting Service’s Hausa Service.
Supporting his colleague’s stance, Senator Ali Ndume (APC, Borno) stated that the northern senators had met with their governors and other leaders and had decided to recommend that the tax reform proposals be withdrawn in order to obtain further input and support.
During Wednesday’s session, Deputy Senate President Jibrin Barau directed the Senate Committee on Finance to suspend its work on the measures and established a special committee to communicate with the Attorney General of the Federation.
Godswill Akpabio, the president of the Senate, quickly disregarded Barau’s directive on Thursday, stating that neither the bills nor the public hearing had been rescheduled.
Nevertheless, several senators have determined that the tax legislation should receive the required attention, notwithstanding the northern federal parliamentarians’ prior stance.
Only a handful of northern senators opposed the proposals, the senators, who spoke on condition of anonymity to avoid angering their governors, pointed out.
The majority of his colleagues, according to one northern source, were in favour of the bills, but they wanted the grey areas to be changed or eliminated.
A Northern Senators Forum member told The PUNCH that there weren’t many politicians advocating for the withdrawal.
The legislator clarified that a lot of other people supported the laws, especially because of the benefits they would provide for the nation.
“We are not requesting that the tax reform bills be put on hold, he stated. Undoubtedly, a minority of our members are advocating for the measures to be withdrawn. To be honest, fewer than ten people are requesting the withdrawal, and I’m even being modest about the numbers. Even that is beyond their capabilities. Many of us in the north, however, are concerned about the VAT-sharing system. Since agriculture is a major industry in the north, the informal sector makes up a larger portion of our economy.
“There is a lot of agitation from the north because “if they are putting VAT by consumption, we will lose, and those in the cities with many businesses will gain so much through the Company Income Tax and others.
“But I think we can reach an agreement; we will take into account all interests and come up with what will work for Nigerians.”
It was confirmed by another MP from the northern caucus that they were seeking for the bills to be ironed out rather than suspended.
“We should work together to resolve the situation, as there aren’t many people calling for the withdrawal. The process will go on without them if they decide to stage a walkout. Regrettably, the North will be the target of the measures the tax reform bills are passed without their input. We are happy that the president has ordered the Senate to convene with the judiciary to thoroughly examine the contentious provisions,” the senator replied.
The lawmaker stated that the measures would be approved, but with modifications that would take into account the needs of all.