The Senate has passed four tax reform bills proposed by President Bola Tinubu for a second reading.
The bills were approved after a debate led by Opeyemi Bamidele, the Senate Majority Leader, on Thursday. Bamidele highlighted that the bills aim to simplify the tax system, reduce the burden on small businesses, and streamline tax collection processes.
“It will eliminate double taxation. In the area of tax exemption for salaries below the minimum wage,” Bamidele explained.
He also mentioned that the proposed reform includes a plan to increase the share of VAT allocated to state governments from 15 percent to 55 percent. “There is a reasonable effort to establish core tax statutes in the bill,” he added.
Seriake Dickson, the senator for Bayelsa West, noted that Nigeria’s reliance on oil revenue had hindered the development of an effective taxation system. “I am aware that some issues have been raised, and that is legitimate,” he said.
He added, “There is nothing wrong with saying that phone calls made in Sokoto are calculated and paid to those states. We should ensure that this is transparent.”
Ali Ndume, the senator for Borno South, called for the bills to be delayed for further legislative review. “Reforms are necessary if we are to move forward. My problem is number one, the timing. Number two, the issue of derivation and VAT,” he said. “The constitution must be amended for some of these provisions to be effected.”
Tahir Monguno, the Chief Whip, countered Ndume’s position, urging that the bills should not be withdrawn and that amendments could be made during the public hearings. “These bills will reduce the tax burden on Nigerians,” Monguno emphasized.
The bills were passed after Senate President Godswill Akpabio put them to a vote.
President Tinubu had requested the National Assembly to consider and pass the bills in October
