The House of Representatives is set to commence deliberations Wednesday on President Bola Ahmed Tinubu’s proposed tax reform bills, following consultations between northern lawmakers and zonal caucus leaders.
The lawmakers have resolved to ensure that no aspect of the bills that could negatively impact the North is passed into law.
President Tinubu had initially submitted four tax reform bills to the National Assembly in September 2023, based on recommendations from the Presidential Committee on Fiscal Policy and Tax Reforms.
The proposed laws aim to establish a structured taxation framework, create a tax tribunal, and introduce a tax ombudsman.
However, debates on the bills were put on hold in November 2023 due to strong opposition from northern lawmakers and governors, who expressed concerns that the proposed reforms could further strain the already limited financial resources of northern states.
After negotiations between the governors and President Tinubu, a revised version of the bills was agreed upon, with the Nigeria Governors Forum announcing their endorsement.
The updated proposal reduces the Value Added Tax (VAT) revenue allocation based on derivation from 60% to 30%. The remaining 70% is to be distributed with 50% shared equally among all states and 20% allocated based on population.
Confirming the upcoming debate, a House member from the North West geopolitical zone stated that while northern governors have softened their opposition, lawmakers remain committed to thoroughly scrutinizing the bills to safeguard the interests of their constituents.
Speaking on the resolution reached by northern lawmakers, the legislator said:
“The Northern Caucus of the House, including all zonal caucus leaders, met yesterday with Speaker Abbas Tajudeen in attendance. We have resolved to ensure rigorous scrutiny of the tax reform bills.”
He emphasized that lawmakers would closely monitor every stage of the process, from debates to public hearings, to prevent the passage of any provision that could be detrimental to the North.
The meeting was chaired by Alhassan Ado Doguwa, Chairman of the Northern Caucus, with notable lawmakers including Ahmed Idris Wase (North Central), Mukhtar Betara (North East), and Sada Soli Jibia (North West) in attendance.
“Even though our governors have reportedly endorsed the revised bills, we believe certain provisions still do not favor the North,” another lawmaker stated. “We will actively participate in the debates, public hearings, and final clause-by-clause voting to ensure that harmful provisions do not make it into law.”
The tax reform bills are expected to spark intense discussions as lawmakers weigh their potential impact on different regions of the country.
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