By Abiola Olawale
The Senate on Thursday passed four tax reform bills proposed by President Bola Tinubu for second reading.
The passage of the four tax reform bills came after lawmakers of the red chamber debated on the subject matter.
The New Diplomat reports that the Majority Leader of the Senate, Senator Opeyemi Bamidele led the debate during plenary on Thursday.
In his lead debate, Bamidele highlighted that the proposed bills aim to clarify and simplify the complex tax landscape, ultimately easing the financial burden faced by small businesses.
He also emphasized that these changes would also enhance the efficiency of tax collection processes, making them more straightforward and accessible for all taxpayers.
Bamidele stated: “It will eliminate double taxation. In the area of tax exemption for salaries below the minimum wage.
“It is proposed that the state governments share 55 per cent of VAT from 15 per cent. There is a reasonable effort to establish core tax statutes in the bill.”
Joining the debate, Senator Seriake Dickson, the lawmaker representing Bayelsa West senatorial district of Bayelsa State at the Senate, said the discovery of oil in Nigeria did not allow the country to have a good taxation system as a means of revenue.
In his words: “I am aware that some issues have been raised and that is legitimate.
“There is nothing wrong in saying that phone calls made in Sokoto are calculated and paid to those states. We should ensure that this is transparent.”
However, Senator Ali Ndume, the lawmaker representing Borno South senatorial district of Borno State at the Senate, opposed the passage of the bill.
Ndume demanded that the bills should be stood down for further legislative work.
He argued “Reforms are necessary if we have to move forward. My problem is number one is timing. Number two is the issue of derivation and VAT.
“The constitution has to be amended for some of these provisions to be effected.”
Countering Ndume’s position, the Senate’s chief whip, Senator Tahir Monguno, said the bills should not be withdrawn and that changes could be made during the public hearing on them.
He said: “These bills will reduce the tax burden on Nigerians.”
Following the debates, the President of the Senate, Senator Godswill Akpabio put the bills into vote.
The majority of the lawmakers shouted, “Aye.” Akpabio then hit the gravel, passing the bills for a second reading.
The Senate President then referred the bills to the Committee on Finance, which was asked to revert in not more than six weeks.
It would be recalled that Tinubu had requested the national assembly to consider and pass the bills in October.
The four tax bills sent to the National Assembly include the Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a legal framework for all taxes in the country and reduce disputes.
Others are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.
