The Nigerian Senate has suspended action on the tax reform bills currently before it, following intense controversy and opposition from various stakeholders.
The bills, which include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, and the Nigeria Tax Bill, 2024, have been criticized by Northern governors, who describe them as anti-democracy.
Deputy Senate President, Jibrin Barau, announced the suspension of action on the bills during a plenary session on Wednesday. He explained that the Senate has decided to set aside politics, ethnicity, and regionalism to work together on resolving the issues surrounding the tax reform bills.
A special committee has been constituted to meet with the executive branch and work with the Federal Government to resolve the contentious areas in the bills.
The committee, which includes members of the Senate leadership and other stakeholders, will hold a forum with the Attorney General of the Federation to address all areas of disagreement and ensure interests of parties are addressed.
The tax reform bills have been a subject of controversy since their introduction to the National Assembly. Northern lawmakers have strongly opposed the proposed “derivation” formula in the value-added tax (VAT) distribution system, arguing that northern states would be unfairly impacted.
The Senate’s decision to suspend action on the bills is seen as a welcome development, as it allows for further consultations and negotiations to address the concerns of all stakeholders.
The committee established by the Senate is expected to meet with the Attorney General on Thursday to discuss the way forward.
The tax reform bills are part of the Federal Government’s efforts to reform the tax system and increase revenue generation. However, the bills have been criticized for their potential impact on the economy and the welfare of Nigerians.
As the controversy surrounding the tax reform bills continues, it remains to be seen how the Senate’s decision to suspend action on the bills will affect the outcome of the reforms.
