• Senators list gains of tax reform to Nigerians
• Akpabio chides tax evaders demanding good governance
• ACF urges FG to retain 7.5% VAT, submits paper on bills to lawmakers
Four months after introducing the tax reform bills, which he sent to the National Assembly for consideration and passage, President Bola Tinubu asked the Senate to give him workable laws from the bills.
As the National Assembly began public hearings on the tax reform bills, President of the Senate, Godswill Akpabio, said Nigeria has a choice of implementing the bills and ending its status as a sleeping giant or continuing in its old ways.
While other senators also listed ways the tax reform would benefit Nigeria and Nigerians, the senate president chided citizens, who demand good governance but evade tax payment.
Meanwhile, Northern socio-cultural group, Arewa Consultative Forum (ACF), urged the Federal Government to retain the 7.5 per cent Value Added Tax (VAT) in the nation’s tax laws, as it submits its report containing observations and recommendations on the bills to the National Assembly.
On the first of the two-day public hearing on the bills, there were no dissenting voices, unlike at the outset when major controversy heralded their introduction with the Nigeria Governors Forum as major opposition.
Most of the stakeholders at the event, yesterday, threw their weights behind the hitherto contentious bills at the public hearing organised by the Senate Committee on Finance.
Against expectations, the Arewa think-tank led by the convener, Muhammad Yakubu, debunked insinuations that the North was against the proposed laws.
Tinubu’s request for workable laws from the bills was disclosed by the Chairman, Senate Committee on Finance, Sani Musa (Niger East) in his remarks at the public hearing.
“I met President Tinubu two days ago on the tax reform bills and he told me to go and do the needful. He said, ‘Give me a law that is workable from the tax reform bills I forwarded to the Senate and the House of Representatives in October last year.’
“That request by the President came at a very auspicious time of this public hearing on the tax reform bills, which are not meant to add burden to any section of the country or give undue advantage to any section as well,” he said.
Akpabio said: “It is of interest to note that a bird that does not leave its own nest will never know what happens elsewhere.”
In a speech, while opening the public hearing convened by the Senate Committee on Finance, he condemned “social media and television analysts who never read the bills before embarking on criticisms.”
He charged members of the committee to make efforts to douse misconceptions and misleading information out there about the tax reform bills, adding, “In the National Assembly, we make laws that endure, not for ourselves.”
The Senate Committee Chairman reaffirmed the National Assembly’s commitment to reforming Nigeria’s tax system for greater transparency, efficiency and economic growth.
He underscored the urgency of updating outdated tax laws to reflect modern economic realities.
“These reforms go beyond revenue collection –they are about creating a system that supports businesses, attracts investment and ensures fairness in taxation,” he declared.
The four bills – Nigeria Tax Bill (NTB) 2024, Nigeria Tax Administration Bill (NTAB) 2024, Nigeria Revenue Service (Establishment) Bill (NRSEB) 2024, and the Joint Revenue Board (Establishment) Bill (JRBEB) 2024 – were forwarded by Tinubu as part of his administration’s broader fiscal reforms.
Musa assured stakeholders that concerns over revenue distribution, tax compliance and administrative inefficiencies would be thoroughly addressed. He emphasised that transparency and inclusivity would guide the process, calling on businesses, tax professionals, civil society organisations and the public to contribute meaningfully.
Senate Leader, Opeyemi Bamidele, while giving the vote of thanks, emphasised the need for inclusive stakeholder engagement as the National Assembly moves forward with a long-term development application for the study of critical areas in the country.
Bamidele acknowledged that while the project had been initiated and transmitted to the executive, the public hearing was essential to allow all relevant parties to contribute their perspectives.
He assured that the process would not be rushed.
Akpabio, yesterday, taunted Nigerians for being quick to demand better infrastructure, but almost unanimous in resistance when the topic of taxation arises.
This paradox was a key theme during the event where the Senate President made an impassioned plea for a more responsible approach to taxation.
He lamented: “Tax evasion is not new in Nigeria. From traders in bustling markets to high-earning professionals, many go to great lengths to avoid paying taxes.
“The informal economy, which constitutes a significant portion of Nigeria’s Gross Domestic Product (GDP), operates largely outside the tax net. Even in the formal sector, tax compliance is low, with many businesses underreporting their earnings to minimise their tax obligations.”
ACF’s submission was the outcome of a special purpose committee of experts set up by its Board of Trustees (BoT) to study the bills for appropriate recommendations.
According to the statement issued by the ACF National Publicity Secretary, Prof Tukur Baba-Mohammed, yesterday, ACF said it “considers the proposed tax reforms to have implications for all sections of the country and not just the North.”
Therefore, it explained that “copies of the ACF’s Report have also been distributed to the Forum of Northern State Governors, traditional rulers, northern interest groups, relevant government agencies, other stakeholders and, through e-copies, the general public and the press.”
As part of ACF’s recommendation, Muhammed-Baba said, “The reforms must aim to retain the 7.5 per cent Value Added Tax (VAT) in line with the reality of economic challenges facing citizens and businesses; improving the efficiency of VAT collection, improvements to revenue collection through the formalisation of the informal sectors and the use of digital technologies, as well as the vigorous expansion of Nigeria’s tax base through encouraging private sector investments.
“VAT on agricultural equipment should be expunged; and the words ‘supply and supplies’ in Chapter 6 (VAT), Part 1, Sections 143, 144, 145 and 147 of the Tax Administration Bill should be changed to ‘consumption or consumptions’.”
ACF encouraged all stakeholders to, for posterity and as a national duty, engage and make submissions to the relevant National Assembly committees undertaking public hearings on the proposed tax bills.
It added: “Every interest group is encouraged to take the public hearings seriously enough as to contribute to the emergence of robust laws that will stand the test of time and in the national interest.”
Guardian
