‘Imminent’ Quick Passage Of Tax Reform Bills ‘Worrisome’…It’ll Have Enormous Implications For Northern States-Gov Zulum

Governor Babagana Zulum of Borno State has expressed worry about the tax reform bills getting to the ‘committee stage’ in the senate while noting that ‘imminent’ quick passage of the bills in question is a source of concern.

He warned that the bills will have grave implications for the Northern states and other parts of the country.

Team@orientactualmags.com learned that the governor, who said this in an interview with the BBC Hausa Service on Friday, expressed worry about the expedited process through which the bills are about to get passed into law citing the Petroleum Industry Bill, which took nearly two decades  before getting  passed into law.

‘Why the rush? The Petroleum Industry Bill took almost 20 years before it was finally passed. But the tax reform bills are  being transmitted and receiving legislative attention within a week. It should be treated carefully and with caution so that even after our exit, our children will reap its benefits’ Zulum said.

The governor  also alleged that the bills will  be to the  disadvantage  of some regions in the country.

‘We condemn these bills sent to the National Assembly. They will drag the North backward and also affect the South East, South West, and some South-Western states like Oyo, Osun, Ekiti, and Ondo.

 This is not opposition. Based on our understanding, the bills will destroy the North entirely. We call on President Tinubu to review this decision. He secured 60% of his votes from the North. He should not listen to those telling him the North is not supporting him. What we need is the withdrawal of these tax bills’ he said.

He noted that the bills, if passed into law, will have the Northern states struggling to implement developmental projects, including payment of salaries.

 ‘If these bills are passed into law, we won’t even be able to pay salaries. And if we do, it won’t be sustainable the following year.

We are against it, and even Lagos State is against it. If this bill is dragging regions backward, why won’t they rescind it? Our National Assembly members, including some from the South, are not in support of it’ he said.

Speaking on behalf of the North East, the governor clarified that their opposition to the bill does not amount to opposition to the administration.

‘This is our position, and it doesn’t mean we are against the government. We supported and voted for President Tinubu. But these bills will not be beneficial to us’ he noted.

Recall that the 19 Northern Governors had met on October 28, 2024, and declared opposition to the bills. They specifically rejected the new derivation-based model for Value-Added Tax distribution in the new bills.

The northern governors in a communiqué that was read out by their chairman, Governor Muhammed Yahaya of Gombe State, said what is contained in the proposed bills negates the interest of the North and other sub-nationals.

The Northern Elders Forum had also urged lawmakers from the north to oppose the Tax Reform Bills.

Recall also that the National Economic Council (NEC)  had  during its 144th meeting in Abuja asked  the president  to suspend action and withdraw the bills in question from the National Assembly in order to carry out a ‘wide consultation’ on them.

 President Tinubu had however in a statement issued by his Special Adviser on Information and Strategy, Mr  Bayo Onanuga  submitted that the bills should be allowed to go through the legislative process since inputs can be made during public hearings.

He had also noted that doing what the NEC had recommended is unnecessary cognizant that the legislature has ‘amending power’.

Recall also that the four bills moved to the committee stage in the senate on Thursday, November 28, 2024.

The resolution of the Senate followed the consideration of the general principles of the bills during the plenary session that was held on Thursday.

The bills which were sponsored by Senate Majority Leader, Senator Opeyemi Bamidele are as follow;

‘A Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombudsman for the harmonization, coordination, and settlement of disputes arising from revenue administration in Nigeria and for related matters, 2024

A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007 and enact the Nigeria Revenue Service (Establishment) Act to Establish the Nigeria Revenue Service, charged with powers of assessment, collection of, and accounting for revenue accruable to the Government of the Federation, and for related matters, 2024.

A Bill for an Act to Provide for the assessment, collection of, and accounting for revenue accruing to the Federation, Federal, States, and Local Governments; prescribe the powers and functions of tax authorities, and for related matters, 2024.

A Bill for an Act to Repeal certain Acts on taxation and consolidate the legal frameworks relating to taxation and enact the Nigeria Tax Act to provide for taxation of income, transactions, and instruments, and for related matters, 2024’.

After the second reading of the Bills, the Senate President, Barrister Godswill Akpabio ruled that they should be referred to the Committee on Finance for further legislative action.

The committee has been given 6 weeks to submit its report-Team@orientactualmags.com  Do you have any information you wish to share with us? Do you want us to cover your event or programme? Kindly send SMS to 08059100286, 09094171980 or get in touch via orientactualmag@gmail.com.  Thank you