Speaker of the House of Representatives, Abbas Tajudeen, has stated that the Green Chamber has not yet taken a stance on the Tax Reform Bills.
He made this known during his opening remarks at the interactive session on the Tax Reform Bills held at the National Assembly in Abuja on Monday. However, Abbas emphasized that the House would fulfill its constitutional responsibility by thoroughly scrutinizing the bills and making amendments where necessary.
The bills under consideration include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
The Presidency had sent these bills to Parliament last month, but the National Executive Council (NEC) recommended their withdrawal due to some controversies. However, President Bola Tinubu rejected the withdrawal, allowing contributions to be made during public hearings at the National Assembly.
In his address on Monday, Abbas stated that the interactive session would help the House better understand the complexities of the bills, enabling members to raise any observations or questions regarding their content.
“It is designed to deepen our appreciation of their provisions, commence constructive dialogue on contentious or controversial areas, and build the consensus necessary to produce versions of the bills that align with the interests of the executive, the legislature, sub-national governments, and the Nigerian people. Importantly, this session will help us identify areas needing amendment, clarification, or improvement and consider the compatibility of these bills with the 1999 Constitution (as amended) and other extant laws,” he said.
He further noted that tax reforms are a cornerstone of the House’s legislative agenda due to their importance in achieving sustainable economic growth and development. “In every modern state, taxes are the bedrock of public revenue, providing the resources required to deliver education, healthcare, infrastructure, and security.”...Read Full Article [Click Here>]
Abbas pointed out that despite being Africa’s largest economy, Nigeria struggles with a tax-to-GDP ratio of just 6 percent, which is far below the global average and the World Bank’s minimum benchmark of 15 percent for sustainable development. He emphasized that addressing this challenge is crucial for reducing the country’s reliance on debt financing, ensuring fiscal stability, and securing Nigeria’s future.
He added that the tax reforms must consider their financial implications on all segments of society, which is why it is important to scrutinize the provisions thoroughly.
In his address, Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, emphasized the need for Nigeria to take stronger action to address inflation, which currently stands at 33%, as well as the country’s high public debt.
Oyedele highlighted that in 2020, 97% of Nigeria’s revenue was spent on debt servicing.
He also pointed out that the Naira had lost more value over the past decade than the Kenyan Shilling and South African Rand, despite those countries not performing better on many economic indices but having stronger policy reforms than Nigeria.
According to him, Nigeria is still operating with low budgets.
