The Nigerian Senate has bowed to pressure from critics and suspended further legislative action on the tax reform bills forwarded to the National Assembly by President Bola Tinubu.
The decision was made on Wednesday, following criticisms from various stakeholders, including Senator Ali Ndume, APC, Borno South, who led the pack in opposing the bills.
The Senate has set up a 10-man committee, chaired by Senate Minority Leader Abbah Moro, PDP, Benue, to meet with the Attorney General of the Federation and Minister of Justice to resolve contentious issues in the tax bills.
The committee includes other prominent senators, such as Adamu Ailero, Orji Kalu, and Seriake Dickson.
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Deputy President of the Senate, Senator Jibrin Barau, APC, Kano North, stated that the Senate has decided to set aside politics, ethnicity, and regionalism to work together on resolving the issues surrounding the tax reform bills.
He emphasized that the Senate will collaborate with the Executive Arm of Government to establish a forum to identify and address contentious areas and ensure national unity and progress.
The tax reform bills, which include the Nigeria Tax Bill 2024, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill, aim to streamline tax collection, ensure compliance, and optimize revenue.
However, critics have raised concerns about the Derivative clause and the VAT sharing formula, as well as alleged “hidden agendas” behind the bills.
The Senate Committee on Finance has been directed to pause further actions on public hearings and other matters related to the tax reform bills until the issues are resolved