BREAKING! ! Tinubu Gives FRESH Order, Issues Directive Over Controversial Tax Reform Bill- See Details
The recent debates surrounding Nigeria’ s Tax Reform Bills have sparked significant controversy, prompting President Bola Tinubu to order a review of the proposed legislation. These bills— comprising the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill— have drawn mixed reactions across the country. Critics argue that the proposed reforms threaten fiscal federalism, potentially centralizing tax authority and undermining state revenue autonomy.
In response to the mounting concerns, President Tinubu has instructed the Ministry of Justice to collaborate with the National Assembly to address public apprehensions before passing the bills into law. This directive was disclosed in a statement issued by Mohammed Idris, Minister of Information and National Orientation, emphasizing the government’ s commitment to accountability and inclusiveness in the legislative process.
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Despite assurances, opposition remains strong, particularly from northern governors and lawmakers. At an earlier meeting on October 28, governors from the Northern Governors’ Forum rejected the bills’ derivation- based Value- Added Tax (VAT) model, arguing that it could jeopardize financial autonomy in their regions. Subsequently, the National Economic Council urged the President to withdraw the bills for further consultations. However, Tinubu dismissed this request, maintaining that the bills would proceed without withdrawal.
The contentious reforms have not only drawn opposition but also attracted vocal support. Protesters from northern Nigeria recently demonstrated at the National Assembly, backing the reforms and urging their swift passage. These youths, led by Tijani Mohammed, commended the efforts of Deputy Senate President Barau Jibrin and the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, for clarifying the reforms’ benefits.
Supporters argue that the tax reforms would significantly boost state revenues, proposing an increase in VAT shares from 5% to as much as 20%. Prominent voices, such as Sheikh Ahmad Gumi and Catholic Bishop Hassan Kukah, have endorsed the reforms, viewing them as steps toward enhancing economic efficiency and addressing resource mismanagement. Kukah highlighted the reforms as a crucial move toward curbing financial recklessness and fostering national development.
Despite these endorsements, tensions persist within the legislative chambers. A heated session in the House of Representatives underscored the sensitivity of the issue, as lawmakers clashed over expressions of support for the bills. Ekiti State lawmakers, for instance, unanimously backed the reforms, hailing them as transformative measures designed to boost Nigeria’ s economic growth and improve governance transparency.
However, critics like the Arewa Dignity Advancement Initiative argue that the bills are ill- timed and could worsen economic hardships. They highlight flaws in the proposed VAT redistribution formula, claiming it contradicts existing laws emphasizing equality and population- based revenue allocation.
In conclusion, the Tax Reform Bills have elicited a complex mix of support and opposition, reflecting diverse regional and political interests. While the Federal Government insists the reforms will not disadvantage any state, concerns about their potential impact on fiscal federalism and regional equity continue to fuel debates nationwide. As discussions evolve, achieving consensus will be critical for the successful passage and implementation of these reforms.
