Adedayo Akinwale in Abuja

The House of Representatives has passed the controversial tax reform bills submitted by President Bola Tinubu for the second reading.

The bills are: Nigeria Revenue Service (Establishment) Bill, the Nigeria Tax Bill, the Nigeria Tax Administration Bill, and the Joint Revenue Board (Establishment) Bill.

The executive bills, which were submitted to the National Assembly, were read for the first time on October 8, 2024. 

However, the debates on the bills were put on hold due to the controversy generated by the bills with some northern lawmakers vehemently kicking against the bills.

The debates on the bills later degenerated into a north/south issue, especially as it regards the sharing formula of the Value Added Tax (VAT).

The National Economic Council (NEC), a body that comprises the governors and chaired by Vice-President Kashim Shettima, urged the president to withdraw the bills for further consultations. 

However, the defiant Tinubu refused, saying that all concerns should be addressed in the National Assembly.

Leading the debate on the general principles of the bills at the plenary on Wednesday, the House Leader, Prof. Julius Ihonvbere, commended the president for having the courage to institute the bills.

He expressed optimism that the bills would  address and reform the nation’s tax laws with a view to, among others, address issues of multiple tax, multiply revenue collection, and diversify the economy.

Ihonvbere was of the opinion that the opposing views helped strengthen the bills which aim to overhaul the tax system in the country as the oldest tax system in the world. 

In his intervention, the Minority Leader of the House, Hon. Kingsley Chinda, said while he supported the spirit behind the four bills, he has issues with some of the letters of the proposed laws.

He stated: “We have all agreed that the spirit behind the four bills is good. But we have issues with some of the letters of the bills. Why we oppose some letters of the bills, we support the spirit and want to assure Nigerians that we will watch those letters and at the appropriate time, we will ensure that the letters are corrected in the interest of Nigerians.”

Chinda, however, called for the reduction in the VAT, saying it was possible to reduce tax, while efforts should be made to tidy up all areas of conflict.

On her part, Hon. Miriam Onuoha said she was in support of the bills because they seek to balance income, adding that the essence of taxation is to make it in a manner that is progressive, where the poor get better benefits, and take more from the rich.

She cited Section 164 (4 a & b), which provides exemptions and reliefs for additional employment for companies who have taken new employees on a salary of N100,000 or less, adding that the bills propose a 50 per cent discount or rebate for them.

Onuoha said the sunset clause for Tetfund should be expunged, adding that the agency has proved to be an interventionist by reducing infrastructure gap in the country’s tertiary institutions.

She also called for digitization of audited accounts in the new bills, saying it would stop the rampant or incessant frivolous issue and issuance of audited accounts by companies.

Lending his voice, Hon. Hassan Fulata pointed out that all the bills, with the exception of the bill dealing with tax administration, have no interpretation clauses. 

He argued that a bill without an interpretation clause is a blind bill and is subject to abuse of whoever is going to interpret it, saying the House must ensure that there is an interpretation clause on the other three bills.