The Senate will debate the Tax Reform Bills today (Thursday) and may subsequently pass it for a second reading.
This came to the fore on Wednesday when the Deputy Senate President, Jibrin Barau, who presided over the plenary hinted that the bills would likely be passed today (Thursday).
The Senate Leader, Bamidele Opeyemi, stated that the bills would be debated at the plenary on Thursday.
He said, “We’d listen to the experts who will guide us, so that we will be able to present the bills and debate them tomorrow (Thursday).
His comment followed a dazzling presentation by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele.
Oyedele alongside the Chairman of the Federal Inland Revenue Tax, Zacchaeus Adedeji, Director General of the Budget Office, Tanimu Yakubu, were allowed into the plenary to explain the Tax Reform bills in detail to lawmakers.
President Bola Tinubu had earlier in October forwarded four Tax Reforms Bills to the National Assembly.
Following the presentation of the bills, controversies at various level had greeted the bills including governors telling lawmakers not to pass the bills.
However, on Wednesday, the presentation, which highlighted key aspects of the reforms, garnered significant attention among senators.
Oyedele’s comprehensive explanation of the reforms, embedded in four bills currently before the Senate, left a strong impression on many lawmakers.
Oyedele, whose committee came up with the reform bills, said the reform was not planned to tax poverty but prosperity and most importantly, to correct lopsided tax gain derivation.
He said, “The committee proposes four major bills aimed at overhauling the tax system.
“Nigerian Tax Bill seeks to harmonise major taxes into one legislation, simplifies tax processes, and proposes exemptions for low-income earners.
“The Tax Administration Bill aims at establishing standards for tax administration and promotes the use of technology, and aims to streamline tax collection.
“The Nigerian Revenue Service Establishment Bill proposes the establishment of a new revenue service to improve tax collection and coordination among agencies.”
He added, “The Joint Revenue Board Establishment Bill aims to enhance collaboration among tax authorities and create a Tax Ombudsman to protect small businesses.
“Key proposals of the tax reform bills are elimination of minimum tax for loss-making companies; introduction of a 15% effective tax rate on profits for large companies, removal of VAT on essential goods and services, increased tax thresholds for personal income tax to exempt low-income earners.”
On the contentious revenue sharing formula from VAT, Oyedele explained that; “The current VAT sharing formula is deemed unfair, favouring states like with major corporate headquarters.
“The proposal includes a more equitable distribution based on consumption within states as against current sharing formula which lopsidedly favours Lagos State, being host to headquarters of many corporate organisations.”
He added that the proposed tax reform bills would exempt any Nigerian not earning above N1m per month from Personal Income Tax .
After listening to the presentation, the lawmakers were overwhelmingly satisfied as none of them had any questions when the Deputy Senate President opened the floor for senators to ask their questions.
Earlier, there was mild drama as fireworks of Point of Orders ensued in the hallowed Red Chamber.
Tensions arose before the presentation when the Senate Leader, Opeyemi Bamidele (APC, Ekiti Central), moved to suspend Senate rules to allow Oyedele, the FIRS chairman, and Budget Office Director-General to enter the chamber.
Moving for the suspension of Order 12 to allow for strangers into the chamber, Bamidele said, “Tax experts and consultants as well as the Director General of the Budget Office and the Chairman of the Federal Inland Revenue Tax, Zacchaeus Adedeji are to attend the plenary to explain the tax reform bills in detail to lawmakers.”
However, immediately after the submission, the lawmaker representing Bauchi Central, Senator Abdul Ningi (PDP), stood up and read from the Order listing the titles of those who were allowed into the Senate plenary by the Senate Rule.
Ningi said that such a conversation was more appropriate at the committee level and should be handed over to the Committee on Finance and maybe Appropriations to interface with the team.
But in response, the Deputy Senate President, Jibrin Barau (APC, Kano North) explained that the Senate suspended its rule to allow for openness and let Nigerians watch the live proceedings and listen to the debate of the Tax Reform Bills.
He thereafter asked the Senate Leader to address the Order he came under.
Responding, Bamidele acknowledged Ningi’s concerns but clarified:
“Mr. President, my motion was for the suspension of Order 12, not its invocation. Order 12 outlines who is permitted to speak in this chamber and the exceptions allowed. However, when a rule is suspended, it ceases to apply in that context.
“For the sake of clarity, I amend my motion to also include Order 1B, which empowers the Senate to regulate its procedures in cases where no specific rule exists.
“So, Mr. President, my motion is based on both the suspension of Order 12 and the invocation of Order 1B. Nigerians deserve to hear from these experts, and we, as lawmakers, need this information too.”
After his explanation, Barau called for a voice vote. The motion passed in favour of the ayes, and the economic team was allowed into the chamber.
Shortly after, Senator Ali Ndume (APC, Borno South) expressed dissatisfaction, arguing that such a significant matter should have been listed on the Order Paper.
He suggested printing a supplementary order paper or deferring the discussion to another legislative day.
He then ruled Ndume out of order.
After the economic team was admitted, Ndume raised another point of order, objecting to Barau’s earlier comment referring to procedural concerns as “rhetoric.”
Ndume described this as an insult and demanded an apology.
Barau, in response, laughed and clarified, “Rhetoric isn’t an insult. My comment wasn’t directed at you but was a general remark.”
He once again ruled Ndume out of order, putting an end to the heated exchange.
The economic team proceeded to present their insights, paving the way for deliberations on the Tax Reform Bills.
At the end of the presentation, the Deputy Senate President, Barau said, “We can see tha
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