By Damilare Adeleye
Indications have emerged that President Bola Tinubu is set to withdraw the Tax Reform Bills forwarded to the National Assembly barely two months ago.
It was learnt that the withdrawal is owing to the controversy generated by the four bills, which were sent to the parliament by President Tinubu on the 3rd of September, 2024.
Sources in the Presidency disclosed that there is a consensus by the government to withdraw the bills.
They added that those pieces of proposed legislations would be modified and resubmitted to the National Assembly in due course.
Recall that after the 144th meeting of the National Economic Council (NEC), presided over by Vice President Kashim Shettima, yesterday, the NEC advised the federal government to withdraw the tax reform bills.
The recommendation came after governors of the 19 northern states, who met in Kaduna on Monday, alongside prominent traditional rulers from the region, resolved, among others, to reject the Nigeria Tax Reform Bill.
In a communiqué issued at the end of the meeting, the northern governors and monarchs decried the contents of the recent Tax Reform Bill, saying they were against the interests of the North and other sub-nationals, especially the proposed amendment to the distribution of the Value Added Tax (VAT).
It was learnt that the bills are the Nigeria Tax Bill 2024, one which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.
The others are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.
Tinubu said the bills were designed to support his administration’s objectives and strengthen fiscal institutions in the country.
“The proposed tax bills present substantial benefits that align with my government’s objectives and fiscal reform on the economic growth by enhancing taxpayer compliance, strengthening our fiscal institutions and fostering a more effective and transparent fiscal regime,” he said.
While addressing State House reporters after the meeting yesterday, Governor Seyi Makinde of Oyo State, said following the controversies that arose as a result of the bills, NEC recommended that the bills be withdrawn so that stakeholders could be carried along.
He said: “NEC today, took a presentation from the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. Their main focus is fair taxation, responsible borrowing and sustainable spending.
“The council acknowledged that the country is underperforming on all indices as regards yield from major revenue sources, also tax to GDP ratio and so on.
“So, after extensive deliberation, NEC noted the need for sufficient alignment between and amongst the stakeholders for the proposed reforms.
“So, council, therefore, recommends the need to withdraw the bill currently before the National Assembly on tax reforms so that we can have wider consultations and also build consensus around these reforms for the benefit of the entire country.
“Also, (the action is) to give people the opportunity to know the vision and where we are moving the country in terms of a tax reform, because there is really a lot of miscommunication and misinformation.
“The bill will be withdrawn from the National Assembly and then there will be consultations afterwards,” he said.
On his part, Governor Zulum said: “This is an advice that was given by the council to withdraw the bill, so as to give more time for consultation and I think the language is very clear.”