Former Senate Chief Whip, Senator Ali Ndume, has once again called for the withdrawal of the controversial tax reform bills currently being read in the Senate, urging for more extensive consultation.
Speaking in an interview on Thursday, Ndume, who has opposed the legislation from the onset, outlined several reasons for his stance.
He criticized the imposition of the bill on Nigerians without proper consultation, noting that it is inappropriate, particularly when all 36 state governors and other political elites have expressed their opposition.
Ndume emphasized that the bills should first be withdrawn and only reintroduced after thorough consultations have been conducted.
“It’s on record, and I said there, doing the session. I think it was open. It should be noted that it’s not that I’m totally saying we should throw away the baby with the bath water. But since the governors, the National Economic Council (NEC) and many individuals have said that it’s not that we should throw away the bill.
“No, withdraw the bill. Do more consultation and bring the bill again. Why are they in hurry? If the traditional rulers and NEC said this thing is not good, even if it’s good, when the leaders have taken a decision, remember, that each state has three states have three senators and one governor. These governors sat down collectively and said the bill should be withdrawn,” Ndume said.
Meanwhile, these bills have successfully passed the second reading in the Senate, leaving only the third reading and presidential approval for them to become the nation’s new tax laws.
Controversy around Tax Reform Bills
- There have been different controversies around the proposed tax reform bills which some factions of the country have taken back that the new tax model may not be favourable to them.
- For instance, the Northern Governors Forum expressed their opposition to the bill, urging legislators from the region to resist any legislation that undermines the interests of Northerners nationwide.
- Additionally, the National Economic Council (NEC), which comprises the 36 state governors and is chaired by the Vice President, called for the withdrawal of the bills to allow for proper consultations before proceeding to the National Assembly.
- However, President Tinubu disregarded the recommendations from both the Northern Governors Forum and the NEC, stating that the process is legislative and that inputs can be incorporated during public hearings.
What you should know
- President Tinubu established the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Mr. Taiwo Oyedele, a former tax expert at PwC.
- The committee was tasked with overhauling Nigeria’s tax system to improve administration and reduce the tax burden on individuals and businesses.
- Its mandate includes addressing the issue of multiple taxation on businesses and enhancing revenue collection to improve the country’s low revenue-to-GDP ratio.
- Among the committee’s recommendations is a new withholding tax regime set to take effect from January 1st. This regime exempts small businesses, producers, manufacturers, and farmers from paying withholding tax, while also reducing rates for businesses with low-profit margins.
