Nigeria Today Magazine General News Tax reform: Northern senators demand suspension of action on bills

Tax reform: Northern senators demand suspension of action on bills


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Northern senators have called for the suspension of further legislative action on the controversial Tax Reform Bills, which recently passed second reading in the Senate.

The lawmakers made this demand during a meeting on Monday, citing potential adverse effects on northern states.

The House of Representatives had at the weekend announced that it has suspended debate on the bills due to public outcry and resistance from some northern lawmakers.

The proposed tax laws, submitted by President Bola Ahmed Tinubu to the parliament, have sparked heated debates nationwide.

Critics, including northern governors, traditional rulers, and lawmakers, had urged the president to withdraw the bills for broader consultation. But the president insisted that the bills should be allowed to undergo legislative process.

Senator Buba Umaru Shehu, All Progressives Congress (APC) Bauchi State, who revealed the outcome of the northern senators’ meeting in an interview with the BBC Hausa Service yesterday, said northern senators from both the ruling APC and the opposition parties agreed on the need for the  suspension of action on the proposals.

“These bills are complex and require thorough review by tax policy experts,” he said.

He criticised the perceived haste in advancing the bills, which were deliberated on for only a few days.

Senator Shehu said northern lawmakers strongly oppose the proposed “derivation” formula in the value added tax (VAT) distribution system, arguing that northern states would be unfairly impacted.

He warned that passing the bills without careful review could have long-term consequences.

Also confirming their decision to Daily Trust yesterday, Senator Ali Ndume (APC, Borno) said the northern senators met with their governors and other leaders where they agreed to advise for the withdrawal of the tax reform bills for further consultations and buy-in.

He said this was in line with the suggestions of traditional rulers and the National Economic Council (NEC), adding that state assemblies in the region would also voice out their objections soon.

He equally said some provisions in the bills clashed with the Nigerian constitution and would not stand.

“I am surprised that the motion which we agreed was not mentioned today (Tuesday) at the plenary, but I am hopeful that tomorrow (Wednesday), the Chief Whip of the Senate (Tahir Monguno) will bring a motion for the withdrawal of the bills as agreed in that meeting.

“This is not the first time such a thing has been done; some good examples include the water resource bill when our friends from the South raised concerns and it was withdrawn. We had the Petroleum Industry Bill (PIB), which was withdrawn on several occasions in the House of Representatives and the Senate before it was finally passed after more than ten years.

“As I said before and I will repeat it, why the hurry? This is something that should be done after wide consultation because it requires the buy-in of all stakeholders,” he said.

Ndume also dismissed the claim in some quarters that they were using the tax reform imbroglio to play politics ahead of 2027.

“No; somebody has to be principled. Politically, I am the second oldest legislator in the National Assembly. I am used to saying it as it is. I am not playing the script of anybody. If I have any political leader today, (former president, Muhammadu) Buhari is supposed to be number one and then President Tinubu. I cannot speak against them but I can disagree with them,” he said.

In the House of Representatives, where the deliberations on the proposed laws have been suspended, Rep. Muhammad Bello Shehu Fagge said “We’ve observed the public’s anger over the bill and the strong reactions from our religious leaders, which is why we decided to suspend the debate,” he said.

The controversial bills had been referred to the Senate Committee on Finance for further review. The committee, chaired by Senator Sani Musa (APC, Niger) is expected to subject them to a public hearing to get inputs from experts and members of the public.
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