The meeting of the various caucuses of the National Assembly has stalled the debate on the tax bills currently before the parliament for consideration.
The four executive bills transmitted by President Bola Tinubu on September 3 were the subject of heated verbal exchanges among lawmakers in the Green Chamber at a closed-door session a fortnight ago.
The bills were transmitted to the National Assembly following the recommendations of the Presidential Committee on Fiscal and Tax Reforms headed by Taiwo Oyedele for the review of existing tax laws.
They include the Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will give a clear and concise legal framework for all taxes in the country and reduce disputes.
Others are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.
Since their transmission to the parliament by the President, the bills have been greeted with stiff opposition, particularly from the 36 state governors, who in October called for their withdrawal to allow room for more consultation.
Although some state governors are reportedly shifting grounds, having been convinced of the economic prospects of the tax proposals, the northern governors are yet to buy into the argument in favour of the bills, particularly the proposed sharing template of the Value Added Tax.
Although the tax reform proposals appear to be having a fairly smooth ride in the Senate where they’ve been read for the second time; the same cannot be said of the House of Representatives where the opposition has been more intense.
Following this development, President Tinubu last week directed the Federal Ministry of Justice to liaise with the National Assembly to arrive at a common ground in the interest of the country.
The PUNCH exclusively gathered that the parley between the Attorney General of the Federation, Lateef Fagbemi, and the National Assembly is being delayed as members of the House of Representatives are holding caucus meetings to arrive at a common ground on the reform proposals.
A top ranking officer of the Senate told The PUNCH that several caucuses from the regions and states held several meetings on Monday to chart a way forward before the meeting with the AGF’s team.
Asked when the Senate would meet the AGF, our source said, “Not yet. We’ve been meeting to put our positions together.”
The South-East Caucus in the Senate joined the growing call for broader consultations on the bills following a closed-door meeting of senators from the five South-East states in the office of their leader, Senator Enyinnaya Abaribe (APGA, Abia South).
Speaking to journalists after the meeting, Abaribe clarified that while the caucus was not opposed to the proposed tax reforms, it believed more extensive engagement with stakeholders was necessary before the bills were fully considered by both chambers.
He said, “As Senators from the South-East, we are not against the Tax Reform Bills. However, we insist on wider consultations with our constituents across the 15 senatorial districts, state governments, and other critical stakeholders in our zone.”
He added, “We have reviewed the bills and feel it is essential to share our insights with stakeholders in the South-East to ensure the final framework reflects equity and addresses regional concerns. Consultation is vital for inclusiveness and effective legislation.
“Specifically, we need to consult with our constituents across the 15 Senatorial Districts in the zone, with our state governments and other critical stakeholders.”
In an exclusive interview with The PUNCH, Deputy Minority Whip and leader of the Labour Party in the House, George Ozodinobi, said, “You know the leadership is managing large numbers in the House, mostly in their 30s and 50s. We adapted consultation amongst caucuses and ourselves to avoid ethnic or religious connotations. We are one indivisible nation. I tell you for free that Mr Speaker is shouldering all these responsibilities and I hope that President will appreciate that.”
Also speaking, another LP lawmaker representing Ogbaru Federal Constituency, Anambra State, Afam Ogene expressed the readiness of the lawmakers to participate in the meeting with the AGF anytime one is convened.
“Whenever they schedule it, we are ready to undertake our legislative duty,” he assured.
Similarly, a member of the House from one of the North-East states said he only read about the presidential directive for the Justice Ministry to interface with lawmakers, adding that a communication to that effect was yet to be made official.
“I read about what the President said concerning a meeting with the Ministry of Justice. Is there any news concerning this meeting? Not yet! The Speaker is yet to read any presidential communication to members in that regard,” he told The PUNCH in confidence.
On what might be responsible for the delay, he added, “What I know is that leadership of the House meetings with state caucus leaders were adjourned before the Speaker travelled a week ago with the resolve of reconvening at another date to be announced. That is yet to happen.”
Caucus demands debate
Speaking exclusively with The PUNCH, Minority Leader of the House, Kingsley Chinda, called for the commencement of the debate on the controversial bills, assuring that clauses deemed to be inimical to the wellbeing of Nigerians would be expunged.
While noting that the bills were likely to scale second reading in the Green Chamber, Chinda, who represents Obio/Akpor Federal Constituency, Rivers State, added that the proposed legislation still had a long way to go as they would be subjected to a public hearing to enable Nigerians make their input.
He said, “As a caucus, we want to ensure that all laws made by the parliament would be for the peace and good governance of the country. The tax bills are executive bills and must be thoroughly scrutinised to ensure that they have a human face and are in the interest of the nation.
“We must put into consideration the realities on the ground and the feelings of the people in whose interest the laws are made.”
TheRivers lawmaker added, “Note that tax issues are always not received with joy by the populace anywhere in the world. Most often, it’s always a fight between the haves and the have-nots in society. Everyone is suspicious of tax bills.
“Today in Nigeria, we want to see a tax regime that will be fair to the lower class and, at the same time, encourage investment by tackling the monsters of multiple taxation, hidden taxes etc.”
On the position of the minority parties in the House, Chinda ruled out the notion of rejection of the bills, stating that the caucus only pleaded for time to study the proposals and come up with a position.
“We, the minority caucus, only sought time to enable us to properly study the bills and generate areas for further discussions and possible tinkering before they are passed.
“We are not unaware that passing it for a second reading does not mean that we consent to all the contents. They will go for a public hearing and the committee report will come for clause-by-clause consideration; that is where we shall shoot down offensive clauses or amend them, as need be.
“At the second hearing, the argument is on the general principles of the bills (merits and demerits ), and a general vote is taken on whether they should go to the relevant committees for public hearing,” he added.
In what sounded like good news for the promoters of the bills, Chinda added, “As a parliament, we will not easily kill any bill at a second reading except if the bill is incurably bad or if it is unconstitutional or outside the powers of the National Assembly (a subject matter in the residual list).
“We are likely to pass the tax bills for a second reading and get input from the public, but certainly, some clauses will not survive, and some terms will need to be properly defined and made clearer.
“Areas of ambiguity will be clarified. The bills will not fly out of parliament, the same way they flew in. Their nature and form will be altered before they fly out and be rest assured that the alterations will be in the interest of the people and the country. That is a task we must accomplish without a physical fight but through legislative machinery and manoeuvres,” he pledged.
North to benefit
The 19 northern states in the country stand to benefit more if the tax bills are passed into law, a member of the House of Representatives representing Obokun/Oriade Federal Constituency, Osun State, Oluwole Oke, has said.
Oke, who doubles as the House Committee Chairman on Foreign Affairs, stated that the bills were the beginning of the journey to the commencement of the realisation of the age-long agitation for fiscal federalism in Nigeria.
He said, “I am not aware of any meeting but the journey to fiscal federalism has commenced, and the 19 states of the northern part of Nigeria are the beneficiaries. The truth is that if any of our colleagues or groups of members disagrees with a clause or section of the bills based on their constituents’ demands, they should exercise their rights during consideration of the Report of the Committee on Finance or the Committee of the Whole.”
He called on dissenting members of the Green Chamber to give the bills the chance to be heard during a public debate at plenary.
“These bills should be subjected to public scrutiny at well-organised public hearings. Whatever misgivings anyone has about them, a public hearing will allow bringing those issues to the open,” he added.
Similarly, a ranking member of the House, who spoke on condition of anonymity, told our correspondent that the North would lose nothing if the bills were passed, stressing that the fears being entertained by the governors “is as a result of false narratives weaved about the bills.”
The lawmaker, who hails from the North Central, said, “The biggest problem we have in this country is not poverty. It is not hunger. Our biggest problem is that we don’t read. How can anyone read the tax bills and still oppose them? The northern region is the agricultural base of the nation. We may not have as many industries as Lagos but there are quite several factories here too. Have we spared a thought on what these can translate to?”
Describing opposition to the bills as the work of “conservative elements,” the lawmaker reminded his colleagues not to forget that “the only constant thing in life is change. Our governors should understand this too and embrace change. You want us to stick with the old order, yet you are struggling to meet basic service delivery. What is it that they are afraid of?”
