Our reporter/ The Senate has passed for second reading the four tax reform bills sent for consideration by President Bola Tinubu in October 2024.
The controversial bills were passed after the Senate Majority Leader, Opeyemi Bamidele, who led the debate on the bills, explained their significance on Thursday.
“It will eliminate double taxation, in the area of tax exemption of the salaries below the minimum wage. It is proposed that the state governments share 55 percent of VAT from 15 percent. There is a reasonable effort to establish core tax statutes in the bill,” Bamidele said.
Bayelsa West Senator, Seriake Dickson, blamed the discovery of oil for the country’s poor taxation system for revenue.
He said, “I am aware that some issues have been raised and that is legitimate. There is nothing wrong in saying that phone calls made in Sokoto are calculated and paid to those states. We should ensure that this is transparent.’’
Insisting that the bill be stood down however, Borno South senator, Ali Ndume who although admitted that, “Reforms are necessary if we have to move forward,” stated that, “My problem is number one is timing. Number two, the issue of derivation and VAT. The constitution has to be amended for some of these provisions to be effected.”
The Senate Chief Whip, Tahir Monguno, who disagreed with Ndume, said the bills should be passed for changes to be made during the public hearing, adding that, “These bills will reduce the tax burden on Nigerians.”
After a voice vote by Senate President Godswill Akpabio, the bills were passed for second reading.
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