Monday, December 23, 2024

Tax reform: Reps suspend debate indefinitely as northern govs mount pressure

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•72 lawmakers, Zulum, Tambuwal reject bills, APC slams critics as northern group protests

The House of Representatives has suspended indefinitely the debate on the Tax Reforms Bills earlier fixed for Tuesday following mounting pressure from the 19 northern states governors, The PUNCH reports.

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The planned debate was called off in a memo signed by the Clerk of the House of Representatives, Dr Yahaya Danzaria, as 73 northern lawmakers kicked against the bills.

Those who rejected the bills include 48 Reps members from the North-East, 24 federal lawmakers from Kano and a former Governor of Sokoto State, Senator Aminu Tambuwal, who represents Sokoto South Senatorial District.

The memo suspending the debate dated November 30, 2024 is titled, ‘Rescheduling of Special Session on Tax Reform Bills.’

It read, “I am directed by the House leadership to inform all Honourable Members that the special session, initially scheduled for Tuesday, December 3, 2024, to discuss all the tax reform bills, has been postponed to a later date.

“This rescheduling is due to the need for further and broader consultations with all relevant stakeholders. A new date and venue for the session will be communicated in due course. We regret any inconvenience this may cause and appreciate your understanding.”

Giving an insight into the development during the closed-door session, a lawmaker from the North-West, stated, “As the representatives of the people, we have resolved to continue our consultation on the matter,” adding that “Things degenerated almost to a point of rebellion against the Deputy Speaker Benjamin Kalu who presided over the executive session.”

According to him, what transpired during Thursday’s executive session indicate that the bills may not have a smooth ride in the House.

“From what I can deduce, the Governors of the North are not yet convinced about the arguments in favour of the bills. The bills are against the interest of the North and that is why we are saying, ‘if you think this is not the case, give us more time to consult with our people.’

“The speed with which they want these bills considered and passed is suspicious. This is why our governors are not convinced and we are not convinced either,” he noted.

The bills include the Nigeria Tax Bill 2024, which aims to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.

Others are the Nigeria Revenue Service Establishment Bill, expected to repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service as well as the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.

On October 29, 2024, the Northern Governors Forum, the umbrella body comprising the 19 governors of the region, kicked against the bill, particularly the Value Added Tax-sharing template.

Last week, the Tajudeen Abbas-led 10th House spent over two hours in executive session to forge a common front on the bills, only to emerge to announce the continuation of consultation ahead of the debate on the general principles of the bills.

One of our correspondents gathered that the bills would have been debated on Tuesday, but the intense pressure on lawmakers fuelled by Friday’s remark of Borno State Governor, Babagana Zulum, may have triggered the postponement of the debate yet again.

Zulum was quoted in an interview with BBC as saying, “Why the rush? The Petroleum Industry Bill took almost 20 years before it was finally passed. But this tax reform bill is being transmitted and receiving legislative attention within a week. It should be treated carefully and with caution so that even after our exit, our children will reap its benefits.

“We condemn these bills sent to the National Assembly. They will drag the North backwards and also affect the South East, South West, and some South-Western states like Oyo, Osun, Ekiti, and Ondo.”

In what appeared a reminder of how Tinubu was elected the President, Zulum urged him not to gloss over the role the North played in his election.

Lawmakers reject bills

Corroborating the position of their state governor,Abba Kabir Yusuf, the 24 federal lawmakers from Kano State have also rejected the tax bills.

The decision was adopted during a state caucus meeting on Sunday chaired by the Kano State Deputy Governor, Aminu Gwarzo, and attended by many state representatives.

The member representing Kumbotso Federal Constituency, Idris Dankawu, stated, “To clarify this issue, I want to inform the people of Kano State, especially the residents of Kumbotso Federal Constituency, that based on the outcome of our meeting, we are against the proposed tax reform bills. We have agreed to work collectively to ensure that the bill is withdrawn in the overall interest of the good people of Kano State.

“Let me reassure the good people of Kumbotso Federal Constituency that your views, opinions and yearnings will continue to receive my utmost attention and care.”

A former Governor of Sokoto State, Senator Aminu Tambuwal, similarly thumbed down the bills.

Tambuwal made his position known during the distribution of relief materials to victims of flooding as well as handing over starter packs to over one thousand beneficiaries of skills acquisition in his senatorial district on Sunday.

He condemned the timing of the bill, which he said was wrong and not in tune with the demands of the citizens.

He said, “Let me use the opportunity of this platform to address the issue that is raging for now; the issue of Tax reform as presented by President Bola Ahmed Tinubu.

“I believe this is a wrong time for any upward review of either VAT or any form of tax, the time is inauspicious, the time is very wrong.

“These are hard times for the people of Nigeria and what they are going through. What we require of the government is for it to focus on projects and programmes that will bring succour and relief to the people and not increase their hardship.

“Already, we are facing the hardship occasioned by the devaluation of the naira and removal of fuel subsidy that was done by this regime. I believe we should focus on managing the hardship and see how we can bring our people out of hardship.

“The recent statistics of National Bureau of Statistics shows that over 30 million Nigerians are already in abject poverty.”

APC lawmakers lobby

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