Nigerian Govs disagrees with members of the Federal House of Representatives over President Tinubu New VAT bill
It appears that several state governors are putting pressure on federal lawmakers to withdraw their support for President Bola Tinubu’s Tax Reform Bills, specifically the Value Added Tax (VAT) bill.
The governors are allegedly threatening to deny lawmakers return tickets in the 2027 general elections if they don’t comply.
The deputy spokesman for the House of Representatives, Mr Philip Agbese, has disclosed that some state governors are threatening to deny federal lawmakers return tickets in the 2027 general elections if they do not withdraw their support for President Bola Tinubu’s Tax Reform Bills now before the National Assembly for consideration.
State governors are reportedly threatening federal lawmakers to deny them return tickets in the 2027 general elections if they support President Bola Tinubu’s Tax Reform Bills, specifically the Value Added Tax (VAT) bill.
The governors are demanding the withdrawal of the executive bills, citing the need for more consultation and public input. However, President Tinubu insists that amendments can be made during the debate in the Senate and House of Representatives.
The lawmakers will today (Monday) engage the Chairman of the Presidential Committee on Fiscal and Tax Reforms, Taiwo Oyedele, and other renowned tax experts on the bills.
Recall that on September 3, 2024, the President transmitted four tax reform bills to the National Assembly for consideration, following the recommendations of the Oyedele-led tax reforms committee.
The bills 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 provide 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.
The 36 state governors have, however, demanded the withdrawal of the executive bills, citing the need for more consultation and public input.
In the meantime, the President has rejected the counsel of the governors, insisting that amendments to some of the clauses can be made when the bills come up for debate in the Senate and House of Representatives.
Isome governors are holding meetings ahead of National Assembly resumption to consider the tax bills and other important legislations.
He said, “Some of these governors are threatening members from their states. They have even gone far to threaten that they would deny members return tickets in 2027 if they support the bills.”
The threats notwithstanding, the Benue lawmaker said nothing would make him and his colleagues change course, provided the bills are targeted at revamping the economy.
He continued, “As far as we are concerned in the House of Representatives, nobody can stop us from supporting President Bola Tinubu’s bid to reboot the economy to work for the country.
“We are united across party lines to make sure the country works. This is the disposition of Speaker, Tajudeen Abass.”
Waxing spiritual, Agbese quoted Isaiah 54:15 saying, “Behold, they shall surely gather, but not by me. Whosoever shall gather together against thee shall fall for thy sake.”
While noting that lawmakers in the past could indeed be cajoled to give up their principles, the legislator reminded the governors that the 10th Assembly congressmen are a different breed of Nigerians.
He said, “The difference between the new crop of politicians in the House of Representatives is that we are intellectually sound, progressive-minded and pro-Nigeria.
“We were not elected by the governors but our constituents and as far as the legislation (bills) will work for those that elected us, we will support them unequivocally, wholeheartedly and powerfully to see the light of the day.”
Meanwhile, the House, according to Agbese, will on Monday interface with the Chairman of the Presidential Committee on Fiscal and Tax Reforms, Oyedele, and other renowned tax experts, ahead of Tuesday’s resumption of plenary.
He added that the leadership of the House, in a bid to enable lawmakers to make contributions from a position of informed knowledge, had distributed copies of the bills to members for their independent study.
“We are engaging Taiwo Oyedele and other tax experts on Monday.
“We have made copies of the bills available to every lawmaker to study, dissect and make inputs when we bring them up for debate,” he stated, adding that the proposed legislation was likely to scale through but with some amendments where necessary.
He continued, “I see the 10th House Congressmen passing the bills with minor adjustments to polish them with a touch of patriotism and intellectualism. That’s the trademark when you have a teacher leading a parliament anywhere in the world.”
The bills are expected to dominate debate in both chambers of the National Assembly when the lawmakers reconvene for plenary duties, on Tuesday, November 19.
Also, in a telephone interview with The PUNCH, the member representing Ogbaru Federal Constituency, Anambra State, Mr Afam Ogene, said the interface with tax experts billed for Monday (today) would reveal the merits and demerits of the tax, urging Nigerians to be patient with their representatives as they brainstorm to take a position on the bills.
Ogene said, “For starters, the legislature, anywhere in the world, is a deliberative assembly of men and women charged with the responsibility of making laws for the good governance of that given society. Flowing from the above, it is only wise that the legislature and legislators should never shut the doors to dialogue, even with perceived opponents.
“As a National Assembly, my take is that the overall good of our country, and its component units should be uppermost in arriving at any decision.”
While noting that there were genuine fears over the motives of the proposed tax laws, the Labour Party legislators said Monday’s interface would avail both parties the opportunity to hear each other.
He continued, “Fears have been expressed regarding what the real ‘motives’ of the tax bills could be, but therein lies the real essence of the technical session of tomorrow (today) by the promoters of the bills.
“I expect that during the session, everyone who has misgivings about particular clauses and sections of any of the bills would be allowed to express such, so that at the end of the day, suggestions and recommendations for possible amendment would be attended to, before the public hearing stage.”
On his part, Odianosen Okojie representing Esan North East/Esan South East, Edo State, urged his colleagues to waste no time in passing the bills when they come up for debate on the floor during plenary.
He said, “I will urge the House to speedily pass the tax reform bills in support of Mr President. The President means well for the country, looking at the bold steps he is taking, in terms of positive policy making. The governors should embrace the tax reform bills because it’s going to be a win-win situation for all.
On his part, a Peoples Democratic Party lawmaker representing Obokun/Oriade Federal Constituency, Osun State, Oluwole Oke, pledged his readiness to work with the Green Chamber in arriving at a position on the matter.
“I will work with the committee at the public hearing and in the committee of the whole,” Oke told our correspondent.
Efforts to get comment from the spokesperson for the Senate, Yemi Adaramodu, proved abortive as he could not be reached via phone calls and did not reply to the text and WhatsApp messages sent to him by our correspondent.
Tax Reform Bills Overview
The bills in question include:
- Nigeria Tax Bill 2024: Provides the fiscal framework for taxation in the country
- Tax Administration Bill: Establishes a clear and concise legal framework for all taxes
- Nigeria Revenue Service Establishment Bill: Repeals the Federal Inland Revenue Service Act and establishes the Nigeria Revenue Service
- Joint Revenue Board Establishment Bill: Creates a tax tribunal and a tax ombudsman
Governors’ Demands
The 36 state governors have demanded the withdrawal of the executive bills, citing the need for more consultation and public input. However, President Tinubu has rejected their counsel, suggesting that amendments can be made during the debate in the Senate and House of Representatives.
Lawmakers’ Response
Despite the threats, lawmakers like Philip Agbese, deputy spokesman for the House of Representatives, remain resolute in their support for the bills, believing they will revamp the economy. The Speaker, Tajudeen Abass, also shares this sentiment, emphasizing unity across party lines to ensure the country’s progress.
The Tax Reform Bills aim to streamline Nigeria’s tax administration processes, eliminate multiple taxation, and align tax operations with global best practices. The bills include:
- Nigeria Tax Bill 2024: Provides the fiscal framework for taxation in the country
- Tax Administration Bill: Establishes a clear and concise legal framework for all taxes
- Nigeria Revenue Service Establishment Bill: Repeals the Federal Inland Revenue Service Act and establishes the Nigeria Revenue Service
- Joint Revenue Board Establishment Bill: Creates a tax tribunal and a tax ombudsman
Despite the threats, lawmakers like Philip Agbese, deputy spokesman for the House of Representatives, remain resolute in their support for the bills, believing they will revamp the economy. The Speaker, Tajudeen Abass, also shares this sentiment, emphasizing unity across party lines to ensure the country’s progress.
