Tax Reform Bills receives boost as Senate receives Presidential Committee

…stops Ndume from truncating interactive session

By Tunde Opalana

Attempt to reform the nation’s tax system by the President Bola Tinubu’s administration receive boost on Wednesday as the Senate allowed into the chamber members of the Presidential Fiscal Policy and Tax Reform Committee to shed light on the proposed tax reform bills.

This, however, was not without opposition as Senator Ali Ndume representing Borno South senatorial district kicked against yielding the floor of the hallowed chamber to the presidential team.

Raising a procedural question, Ndume had tackled the Senate leadership for bringing up an issue not listed on the Order Paper for the day.

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Ndume tackled the Senate Leader, Opeyemi Bamidele for suspending the Senate rule by invoking order 12(1) to allow the chairman of Federal Inland Revenue Service (FIRS), Zach Adedeji, chairman of the Committee, Mr. Taiwo Oyedele, and Director General, Budget Office of the Federation, Yakubu Tanimu to give clarification on Tax Reform Bills, into the Chamber by the Sergeant-At-Arms.

The former Senate Leader insisted that the Senate Rules forbid visitors to speak to the senators in plenary if their subject matter was not captured on the Order Paper for legislative debate.

Ndume said the tax reform bills matter are too important to be manipulated and the Senate should not in any way play around it because Nigerians have spoken.

“This is a very important matter. We should not in any way try to use the position of the Senate to manipulate it because the Order Paper is clear. I have no problem having them to come to explain whatsoever but we must follow known procedures.

“That is, if today that has to be taken, then there must be a supplementary Order Paper that will reflect this. It is not a matter that you will just come and tell us by words of mouth while we are doing the business of the day.

“Mr President, you can have your way, but I will have my say. You can use your gavel and I will use my voice. Tax Reform Bill is very sensitive, our people have been dominated by this matter. When you say, it is a matter of urgent national importance, yes, but even those matters normally referred to another legislative day if they are so inconvenient.

“Please I beg you in the name of God This matter is very important to not only us, but Nigerians that we represent and we swear by Bible and Holy Quran that we will represent the interest of the people. Nigerians have spoken, the Governors and the National Economic Council have all spoken,” he said.

Senator Jibrin Barau who presides over plenary however insisted that whatever the Senate was doing was within its rules, adding that the Order Paper fies not take precedent over Senate Rules .

He said the “Chamber has no time for rhetorics.”

Ruling Ndume out of order, he said “You have made your point. Now, we are not here for rhetoric. We are here for facts,”

At this point the Chamber went rowdy while the Deputy Senate President tried to restore order and the visitors were allowed into the hallowed Chamber to speak on the proposed Tax Reform Bill.

In his explanation, Mr. Taiwo Oyedele premised his presentation on the fact that the nation’s budget is very low and not enough to fund developmental projects while generated revenue in abysmally low.

He said there are a lot of anomalies in Nigeria’s tax system, hence the need for reformation adding that just about 17 percent Nigerians pay taxes while there are demands by the citizenry on education, health, electricity and security.

He identified low morale, obsolete tax laws and stifle economic environments as impediments to adequate tax generation .

Oyedele lamented that over 60 different forms of taxes are imposed on Nigerians with little revenue generation to show for it .

All these, he said informed the Committee to proposed the bills which comprised of ; Nigerian Tax Bill, Tax Administration Bill, Nigerian Revenue Service Bill and the Joint Tax Revenue Board Establishment Bill, as well as the Tax Appeal Tribunal to settle disputes of tax matter between levels of government.

He allayed the fear on earnings from the Value Added Tax (VAT) which he said has become subject of agitation by a section of the country.

He said the proposition by the Committee is a political solution to address an impeding crisis and legal logjam and to correct lopsidedness in Cat earnings.

Addressing journalists after the interactive session with the Senate, the Chairman of FIRS Zach Adedeji said the major impact of the tax reform is to stimulate the economy.

“Mr. President has said that he will not tax poverty, he will not tax the seeds and he will not tax investment. He will only tax returns and prosperity. This is the beginning of that Mr. President commitment that would have solid fiscal foundation that could actually lead to the prosperity of this country,” he said.

He added that although it is an interactive session where the intent and purpose of the tax reform bills are explained but the ball is actually in the court of the senators to represent the thoughts of Nigerians.