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The Senate appears set to move forward with the passage of the controversial Tax Reform Bills today, unless unforeseen revisions arise. Central to the reforms is a provision that would relieve those with annual incomes under ₦1 million from tax obligations, a measure that has sparked considerable discussion.
The Eastern Updates has learned that the tide has turned in the legislative debate over the bills, with many lawmakers who were initially against them now reconsidering their positions. This change comes after key figures from the Federal Government’s tax sector, including Tanimu Yakubu, Director-General of the Budget Office; Zacch Adedeji, Executive Chairman of FIRS; and Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, offered much-needed clarifications to the lawmakers, addressing their concerns and ensuring greater understanding.
Yesterday, before the lawmakers, the tax executives clarified that the bills were designed to tax prosperity, not poverty. They explained that anyone earning less than one million Naira per year would not be subject to income tax. Furthermore, they addressed concerns about the distribution of Value Added Tax (VAT), acknowledging that the current system favors states like Lagos and promising a review to ensure a more equitable sharing of the tax revenue among all states.
During his leadership of yesterday’s plenary, Deputy President of the Senate, Senator Barau Jibrin (APC, Kano North), confirmed that the debate on the tax bills was not yet concluded and would resume today. His announcement set the stage for further discussions, signaling that lawmakers would continue to scrutinize the bills in the upcoming session.
It has been reported that the bill will begin with its first reading, followed by an executive session for Senators to deliberate further. Afterward, the bill will be fast-tracked to the second reading and quickly pushed toward passage.
Recall that prior to the rushed break, the Senate had on Wednesday, October 30, 2024, listed the tax reform bills in the Order Paper for first reading, but stood it down along with other items for the screening and confirmation of Amb. Bianca Odinaka Odumegu-Ojukwu and six others as ministers- designate appointed by President Bola Tinubu.
The tax reform bills were however not listed in the Order Paper the following day (Thursday, October 31, 2024) for any legislative action before the legislators embarked on a three-week recess.
Earlier yesterday, anger and shouting matches enveloped the plenary midway as the controversial Tax Reform Bill suddenly came up for debate as it was not before the commencement of plenary stated as one of the items for business of the day.
The session witnessed an intense confrontation as tempers rose over the sudden introduction of the Tax Reform Bill, a move that sparked a shouting match among lawmakers.
Trouble started when the Senate leader, Senator Opeyemi Bamidele (APC, Ekiti Central) came up with a point of order after senators had finished with six items on presentation of bills for first reading and consideration of bills where two debated bills scaled second reading and were referred to relevant committees for further consideration.
