Wednesday's rowdy session may continue in Senate over tax reform

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The rowdy session on Wednesday at the Senate will likely continue today over debate on the contentious tax reform bill.

The Senate plenary presided over by the Deputy Senate President, Jibril Barau snowballed into anger and shouting match as the controversial Tax Reform Bills surfaced for debate despite not being captured on the Order Paper.

Disagreement started when the Senate Leader, Michael Bamidele Opeyemi invoked Order 12(1) suspending the Senate Rules to allow the Chairman of Federal Inland Revenue and other Tax experts to give clarification on Tax Reform Bill.

Leader’s motion was greeted with an opposing point of Order by Senator Abdul Ningi who gave a run down list of category of personalities that Senate Rule allows entry into the hallow chamber of the Senate which excluded contractors etc.

While in his ruling the deputy President of Senate, Senator Jibril Barau, who presided over the Wednesday plenary ruled in favour of the leader’s submission and approved that the august visitors be allowed into the Chamber by the Sergeant-At-Arms.

This action of the Barau immediately stoke Senator Mohammed Ali Ndume’s anger when he drew the attention of the Chamber to the relevant provision in Senate Rules, arguing that visitors are forbidden to speak to the Chamber if their subject matter was not captured on the Order Paper for legislative debate.

Ndume insisted that the matter was too important to be manipulated and the Senate should not in any way play around the Tax Reform Bill as Nigerians have spoken.

He said: “This is a very important matter. We should not in any way try to use the position of the Senate because the Order Paper is clear. I have no problem having them to come to explain whatsoever but we must follow known procedures.

“That is if today that has to be taken, then there must a supplementary Order Paper that will reflect this. It is not a matter that you will just come and tell us after we are doing business of the day.

“Mr President, you can have your way, but I will have my say. You can use your gavel and I will use my voice. Tax Reform Bill is very sensitive, our people have been dominated by this matter When you say, it is a matter of urgent national importance, yes, but even those matters normally referred to another legislative day if there are so inconvenient.

“Please I beg you in the name of God This matter if very important to not only us, but Nigerians that we represent and we swear by Bible and Holy Quran that we will represent the interest of the people. Nigerians have spoken, the Governors, the National Economic Council.”

Reacting, Jibril Barau insisted that whatever the Senate was doing was within its rules, adding that the “Chamber has no time for rhetorics.”

He said, “you have made your point Now we are not here for rhetoric. We are here for facts “ At this point the Chamber went rowdy while the Deputy Senate President tried to restore order.

Ndume was eventually ruled out of order and the visitors were allowed into the hallowed Chamber to speak on the proposed Tax Reform Bill.

At Senate, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, says that the proposed tax reform bills are designed to address immediate fiscal challenges and lay sustainable framework for economic growth and development of Nigeria.

Oyedele said the current economic situation in Nigeria had necessitated immediate and comprehensive tax reforms to address poverty, improve revenue collection and create a favorable business environment.

He said that the proposed reforms aimed to alleviate the tax burden on the poorest citizens, while ensuring that wealthier individuals and corporations contribute fairly to government revenue.

Oyedele said that the reforms would simplify the tax structure and reduce the number of taxes, make compliance easier for businesses and individuals, while potentially increasing overall tax revenue.

According to him, building trust between government and citizens is crucial to improving tax compliance, adding that this has resulted in the proposal for the establishment of a Tax Ombudsman.

He described the current VAT sharing formula as unfair, saying it only favoured state governments.

Oyedele further stated that the proposed tax reform would engender a more equitable distribution, based on consumption within states.

The four bills are: the Nigerian Tax Bill, Tax Administration Bill, Nigerian Revenue Service Establishment Bill and Joint Revenue Board Establishment Bill.

Oyedele said that highlighted the key proposals of the tax reform bills to include: elimination of minimum tax for loss-making companies and introduction of a 15 per cent effective tax rate on profits for large companies.

Others are: removal of VAT on essential goods and services., increase in tax thresholds for personal income tax to exempt low income earners and simplification of the tax system by reducing the number of taxes and levies.

He urged the senate to consider the proposed bills favorably to create a more conducive environment for investments and business operations in Nigeria.

Chairman of Federal Inland Revenue Service ( FIRS ), Dr Zacch Adedeji, also allayed the fears of Nigerians on possible introduction of new taxes through the proposed tax reform laws.

Adedeji thanked the leadership of the National Assembly for giving the committee the opportunity to explain to Nigerians the importance of the bills to Nigerian economic growth.

“First of all, we thank the senate leadership for allowing us. You know it is unusual to be here at this time, but we are here today because of the critical and important nature of these bills and the transformative capacity that they all possess.

“This committee was set up more than a year ago; it has moved round the country, made consultations with the governors, commissioners, with everybody; the consultations will still continue until the bills are passed, and even after that, education will continue,” he said.

He said that the essence of the bills was to stimulate the economy, adding: “don’t forget that Mr President had said that he would not tax poverty but prosperity, fruits and not seeds, returns and not investments.

” This is the beginning of Mr President’s commitment to fulfilling these so that we can have a solid foundation that will lead to the prosperity of this country,” Adedeji said.