Tax reform bills: Reps deny govs threatening lawmakers
Less than a week after reports emerged of governors threatening to deny federal lawmakers tickets to vie for National Assembly seats in the 2027 general elections for supporting the Tax Reform Bills, some of the lawmakers have denied the claim.
On Monday, November 18, 2024, the Deputy Spokesman for the House of Representatives, Mr Philip Agbese, said some governors were threatening to deny federal lawmakers return tickets if they did not withdraw support for President Bola Tinubu’s Tax Reform Bills now before the National Assembly for consideration.
The President had transmitted four tax reform bills 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 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.
Reacting to the tax reform proposals, governors of the 19 northern states on October 29, 2024, rejected the proposed shift to a derivation-based model for Value Added Tax distribution, arguing that the model would put the region in a disadvantaged position compared with its southern counterpart.
A few days later, the 36 state governors rejected the bills and asked for their withdrawal to allow room for more consultation.
Agbese, while speaking to Sunday PUNCH on Friday, said the threat against lawmakers was real.
“This has become more than a threat,” he added.
But his colleagues, in separate interviews with Sunday PUNCH, said governors were becoming advocates of the reform bills.
The member representing Ehime Mbano/Ihitte/Uboma/Obowo Federal Constituency of Imo State, Chike Okafor, said, “I am not aware of some governors threatening to deny their lawmakers return tickets if they support the tax bills. I am from Imo State and a member of the All Progressives Congress, the same party as my governor. I work closely with him. I can confirm that he hasn’t asked us the lawmakers from Imo State not to support the tax bills.
“Don’t forget that he was a consummate lawmaker, having served two unbroken terms in the Senate. Again, don’t forget that he’s the Chairman of the Progressive Governor’s Forum.”
Also, the lawmaker representing Ikorodu Federal Constituency, Babajimi Benson, said governors who were likely to oppose the proposed reforms were those who had not taken time to go through their contents.
“If any governor that has read this bill decides to deny a lawmaker his or her return ticket, it means the governor has not read the bill extensively. But I believe most governors have read the bill and are now in full support of it. I am in full support of this bill because it’s a game-changer and progressive. It redistributes wealth, and leaves no state behind,” Babajimi said.
On his part, a member of the Peoples Democratic Party and lawmaker from Niger State, Joshua Gana, played down any threat from state governors, adding that God determines who becomes a leader at any point in time.
“God Almighty raises men into leadership positions in every nation. There’s no threat to any lawmaker on the 2027 ticket to return elected. We are the people’s representatives who will only do what is in the interest of Nigeria and Nigerians,” Gana said.
Similarly, a member of the Labour Party from Abia State, Alex Ikwechegh, doubted the possibility of any governor opposed to the bills.
“I’m not aware of this and I don’t think my governor is on that path,” he said.
The bills are expected to be debated by lawmakers in both the Senate and the House of Representatives on Tuesday, November 26 plenary sessions.
Meanwhile, the APC and the Labour Party have expressed divergent views on the bills.
The National Publicity Director of the APC, Bala Ibrahim, argued that rather than killing the bills, the National Assembly should subject them to further consultations.
The APC spokesman also frowned on the alleged threats and blackmail against the lawmakers, saying such a thing should not be entertained in a democracy.
He said, “Blackmail is not allowed in the constitution neither is it allowed in particularly the type of democracy we are practising in Nigeria. I think what all sides need to do is to engage the instrument of lobby. If you have a mission that you want to scale through, you need to lobby.
“Lobby until you can win the confidence and conviction of the people that are going to deliberate on the issue. So, this tax issue needs to be looked into through wider consultation. All sides need to consult widely. There is a lot of misgivings about it and mischief is also coming in.
“We don’t want the issue to be looked at with an ulterior motive or something that is done to change one part of the country or the other. Let us look at it with a patriotic mind and subject it to proper and additional scrutiny through experts who know what the whole thing is all about. We can then engage the instrument of lobby.”
But the National Publicity Secretary of LP, Obiora Ifoh, wondered why the Tinubu’s administration had been plagued by the ideas of taxation and loans since it was inaugurated on May 29, 2023.
“The only thing I want to say is that there is so much tax being introduced by this government making them look like a government that rules by tax. While they are busy taxing people, they are equally borrowing. Now, the question is, where are all these monies going? Nigerians have yet to feel the benefit.
“It’s not about taxes or how to share the proceeds. It’s about the proper allocations of what has been accrued from the taxes. If you are getting the money and projecting it into making the economy stable and putting food on the tables, that will be fine. But as I’m talking to you, they are still busy discussing when to pay the N70,000 minimum wage, and it is not adding up.
“So, the issue is, taxing Nigeria is killing. The last time I asked, they claimed they are taxing the rich. That is not true. They are taxing everybody because at the end of the day, tax has been added to what the rich put up in the market to sell. So, the people are left with no option but to buy. So, it still trickles down to the masses.”
However, the PDP and NNPP urged the National Assembly to prioritise the welfare of Nigerians over political interests during the discussions.
The Deputy National Publicity Secretary of the PDP, Timothy Osadolor, emphasised that the bills should not be limited to political party discussions.
He stated “The most important position is that of Nigerians. What should also be important is that all stakeholders, regardless of political affiliation, must ensure that there is a taxation system that is fair to all, regardless of where you are from, who you are, the place you live, and even the religion you practise. What is fair should be fair.”
Also, the National Publicity Secretary of the NNPP, Ladipo Johnson, urged lawmakers to approach the bill with courage and critically assess it for the benefit of all Nigerians.
