Ex-minister Pantami speaks on Tinubu’s tax reform bills

Former Minister of Communications and Digital Economy, Isa Pantami, has called on lawmakers to suspend the debate on President Bola Tinubu’s tax reform bills to allow for further consultations.

Mr Pantami, a professor, made the call in a statement he posted on his verified Facebook page on Tuesday.

The four tax reform bills passed second reading at the Senate on Thursday and were referred to the Senate Committee on Finance, chaired by Niger East senator, Sani Musa, for further legislative action, including a public hearing.

The Senate president, Godswill Akpabio, also directed the committee to involve the National Economic Council (NEC), Nigerian Governors’ Forum (NGF) and Civil Society Organisations in the public hearing.

The bills are the Joint Revenue Board of Nigeria (Establishment) Bill, 2024 -SB.583; the Nigeria Revenue Service (Establishment) Bill, 2024- SB.584; the Nigeria Tax Administration Bill, 2024-SB.585; and the Nigeria Tax Bill, 2024 – SB.586.

Some experts said the majority of those criticising the bills had not read their provisions and were only amplifying falsehoods being circulated by uninformed interest groups.

Mr Pantami said the tax reform bills have the potential to transform the country’s tax collection system if improved and implemented in the best interests of the country.

He, however, identified grey areas in the bills, which he said made him uncomfortable and may conflict with the provision of the 1999 Constitution.

Read below Mr Pantami’s statement:

TAX REFORM BILLS!

I have been preoccupied for the past week, having attended the World Halal Summit 2024 as a speaker at the invitation of the Presidency of the Republic of Turkiye. Consequently, I couldn’t find time to read and review all the 4 bills, including the Nigeria Tax Administration Bill, 2024. However, over the last 40 hours, I have been reading them, particularly the Nigeria Tax Administrative Bill.

The bill has the potential to transform tax collection administration if improved and implemented in the national interest. Nevertheless, there are critical observations that need to be addressed, including a potential conflict with the Federal Republic of Nigeria’s constitution.

Several sections of the Bill make me uncomfortable, primarily because they lack clear definitions, which could lead to significant challenges during implementation. Furthermore, regulatory bodies may exploit these ambiguities when developing their regulatory instruments.

In light of this, I offer two pieces of advice to the National Assembly (NASS):

i) Suspend Legislative Action for now as some of the challenges could not be addressed by the chambers alone. In leadership, the ability to change one’s mind is a sign of intelligence and empathy, not weakness; and

ii) Allow for wider consultations on the bills, ensuring that all relevant stakeholders are contacted and any ambiguities are effectively reviewed and addressed.

Specifically, I recommend reviewing the following sections:

1) Section 3(3)

2) Section 7(6)

3) Section 8(2)

4) Section 23

5) Section 28

6) Sections 95, 96,
97, and 118

7) Section 141 (supremacy clause)

I believe that tax, constitutional, and business lawyers, among others, also have a significant role to play in improving the bills. As a policy researcher, I may also commend on the remaining 3 bills later.

Finally, the government must try to address the mistrust between it and its citizens, as our situation as a nation is deteriorating due to this mistrust. Citizens are largely suspicious. Building trust is crucial at this juncture for all arms and tiers of government. We must also prioritise our national interest over and above our personal interests. Issues must also be discussed objectively and critically.

May we continue to serve our country diligently and honestly, praying to Allah to bless the Federal Republic of Nigeria.

Isa Ali Ibrahim (Pantami), CON