President Bola Tinubu has directed the Ministry of Justice to work closely with the National Assembly to address the concerns raised by some section of Nigerians as controversy has continue to trail the Tax Reforms Bills. The President, who is currently in South Africa, gave the directive yesterday as some northern youths stormed the National Assembly in support of the bills.
The bills – the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill – have generated negative reaction across the country with northern governors and lawmakers opposed to some section of the Bill.
According to those resisting the passage of the Bill, the reforms could disrupt the balance of fiscal federalism currently being practised and, potentially centralising tax authority and diminishing state revenues.
However, to douse the tension build up by the bill, president Tinubu has directed the Federal Ministry of Justice and relevant officials who worked on the draft to collaborate with the National Assembly to address all genuine concerns before the bills shall be re-introduced for consideration.
Tinubu’s directive was conveyed through a statement signed by the Minister of Information and National Orientation, Mohammed Idris, titled, ‘President Tinubu committed to accountability on tax bills, and directs Ministry of Justice to work with NASS on concerns.’
The Directive
Contained in a statement, it partly reads, “In line with the established legislative procedure, the Federal Government welcomes meaningful inputs that can address whatever grey areas there may be in the bill.
“In this vein, President Tinubu has already directed the Federal Ministry of Justice and relevant officials who worked on the drafts to work closely with the National Assembly to ensure that all genuine concerns have been addressed before the bills are passed.”
Recall a meeting held on October 28, by governors of the 19 Northern States, under the platform of the Northern Governors’ Forum, unanimously rejected the new derivation-based model for Value-Added Tax distribution in the tax reform bills.
Few days later during a, the National Economic Council, NEC meeting comprising of all 36 state governors, demanded that the President to withdraw the Tax Reforms Bill from the National Assembly for wider consultations.
However, the President insisted that there was no need to withdraw the bill from the National Assembly; instead, they will make an amendment after the passage of the bill.
The northern governors argued that the changes in the tax reform bill might adversely affect their regions’ financial autonomy.
Commenting on behalf of the northern governors, the Borno state Governor, Babagana Umara Zulum warned that while the President could deploy his executive powers to pass the tax bills, there would be consequences for millions of Nigerians.
According to Zulum, the proposed VAT-sharing model will at the end of the day only benefit Lagos and Rivers states.
Buttressing Zulum’s position, Governor Abdullahi Sule, of Nasarawa State throw his weight behind Zulum argument saying the VAT sharing formula need to be reviewed.
However, former Speaker of the House of Representatives, Yakubu Dogara, and many other northern leaders endorsed the bills.
In a similar manner, the Catholic Bishop of Sokoto Diocese, Bishop Hassan Kukah, has said that the proposed tax reform bills would end the recklessness of the elite in the country.
The clergyman was speaking during a Channels Television Morning Brief on Tuesday.
According to Kukah, the bills would mark the beginning of better fiscal management and end financial recklessness, noting that any form of reform must get the country working.
“Nigeria is a very energetic country with people that are so eminently gifted and are roaring to soar at any time. However, our problem is the inability of states to create enough gatherings to contain the energy, vision, and competing narratives of their citizens. This lack of competitive gatherings often spills over into violence.
Yesterday, the Presidency while reacting said most comments from political leaders and commentators “are not grounded in facts, reality, or sufficient knowledge of the bills.”
The information minister insisted, “The fiscal reforms will not impoverish any state or region of the country, neither will they lead to the scrapping or weakening of any federal agencies.”
Meanwhile, the Federal Government welcomed the nationwide debate on the bills saying, “This is the very essence and meaning of democracy.”
