The Chairman of the Senate Committee on Ecology and Climate Change, Seriake Dickson (PDP, Bayelsa West), has expressed confidence that the National Assembly will approve the tax reform bills despite facing opposition from various groups. In an interview with reporters in Abuja on a recent Monday, Dickson emphasized that the bills would be passed in a manner similar to the Petroleum Industry Bill (PIB). He reassured that there would be no catastrophic fallout once the tax bills are approved.
On October 3, 2024, President Tinubu submitted four tax reform bills to the National Assembly. This was announced in a letter read by Senate President Godswill Akpabio and House Speaker Hon Tajuddeen Abbas during separate sessions of both chambers. The submission marks a significant step in the legislative process for these crucial reforms.
President Tinubu stated that these bills aim to bolster Nigeria’s fiscal institutions and align with his government’s broader development objectives for the country. The proposed reforms are intended to enhance the efficiency and effectiveness of tax collection and distribution across the nation.
In a related matter, Ebonyi Governor has issued a stern warning to striking workers, instructing them to return to work or face termination within 72 hours. Additionally, Okpebholo has sworn in three judges who were previously overlooked by Governor Obaseki, highlighting ongoing political developments in the region.
Despite the government’s push for these tax reforms, there has been notable resistance from various stakeholders. Many Nigerians, including some governors, traditional leaders, civil society organizations, and federal lawmakers, have voiced their opposition to the bills. This widespread dissent reflects concerns over the potential impact of the proposed changes.
It is important to note that the Senate has already passed the bills for a second reading, while the House of Representatives is yet to take action. Senator Dickson addressed concerns regarding the upcoming public hearing on the bills, stating that claims of potential chaos without proper consultations are unfounded.
He encouraged those opposed to the bills to attend the public hearing and present factual arguments regarding any contentious sections of the proposed fiscal legislation. This approach is aimed at fostering constructive dialogue and ensuring that all viewpoints are considered during the legislative process.
Dickson, a former Governor of Bayelsa State, recalled past legislative experiences, noting that the PIA was successfully passed despite initial resistance. He indicated that the initial proposal sought a 10% rate, which was ultimately reduced to 3% by federal lawmakers, yet the anticipated negative consequences did not materialize.
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“The Senate has already passed the bills for a second reading. A public hearing will be held, and individuals should prepare to express their views. The tax bill is a proposed law like any other and must undergo the standard legislative process,” he stated.
Currently, taxes collected from Bayelsa State are sent to Lagos State, a situation Dickson wishes to change. He believes that when goods or services are consumed from any state, the taxes should be calculated and paid to that state. This revision of tax laws is seen as an opportunity to correct existing anomalies, reinforcing his support for the proposed reforms.
