President Bola Tinubu’s proposed tax reform bills have faced a setback as the Nigerian Senate suspended further action on the legislations. This announcement was made by Deputy Senate President, Jibrin Barau, who presided over the plenary on Wednesday.
The Senate also directed the Committee on Finance to hold off on the planned public hearing until the concerns raised in the public domain are addressed. In response to the growing controversy surrounding the bills, the Senate established a special committee to engage with the executive branch and work toward resolving the issues.
Barau emphasized the need for unity, stating, “In this regard, we have decided to set aside politics, ethnicity, and regionalism to work together on resolving the issues surrounding the tax reform bills.” He added that a collaborative forum would be formed with the executive to address contentious areas and ensure national progress.
The Deputy Senate President noted that while the country faces significant challenges, including insecurity and economic difficulties, the President’s efforts to address these issues remain a priority. He stressed that the Senate was committed to supporting these initiatives while avoiding actions that could worsen the country’s current situation. Furthermore, Barau confirmed that the Executive and the Senate had mutually agreed to involve the Judiciary to help resolve the matters at hand.
The tax reform bills, which include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, the Nigeria Revenue Service (Establishment) Bill, 2024, and the Nigeria Tax Bill, 2024, aim to overhaul Nigeria’s tax laws. However, they have faced significant opposition, particularly from northern governors and the National Economic Council, who argue that the reforms could disadvantage the region.
Despite this opposition, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, recently clarified that the bills would be more beneficial to the northern region.
The Senate’s latest move follows the passage of the bills for second reading last week. Meanwhile, the House of Representatives held a heated session on Tuesday, with lawmakers divided over the proposed tax reforms.
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