Tax Reforms: Ndume asks presidential committee to negotiate with NEC, governors, traditional rulers

Borno South Senator Ali Ndume has asked the Presidential Committee on Fiscal Policy and Tax Reforms to negotiate with the National Economic Council (NEC), governors, and traditional rulers before the National Assembly passes the four tax reform bills proposed by President Bola Tinubu.

Mr Ndume, a member of the All Progressives Congress (APC) as the president, stated this during the debate on the general principles of the bills on Thursday.

PREMIUM TIMES earlier reported that the Senate passed the bills for second reading.

The upper chamber passed the bills a day after some disagreement broke out on the floor when the Presidential Committee on Fiscal Policy and Tax Reforms, led by its Chairman, Taiwo Oyedele, came to explain their nitty-gritty.

During Wednesday’s plenary, Mr Ndume argued that the bills should be withdrawn since some state governors and the economic council chaired by Vice-President Kashim Shettima had rejected it.

In a recent interview with Channels TV, Mr Ndume, a prominent opponent of the tax reform bills, asserted that they were “dead on arrival” without proper consultation. He, however, conceded that he had yet to read the contents of the bills.

No to VAT sharing formula

During Thursday’s plenary, the senator noted that with the provision of the sharing formula of the VAT, many of his colleagues would not tolerate such a reform.

“And for me, as I said, I looked at the bill. The bill contains so many good things, but these two things, derivation and VAT. Even though you said it should be addressed at the public session, it is not something that many of us would agree to.

“You started by saying we are going to negotiate, which is good. And it is coming from you. But why don’t we negotiate first before we come out to take a position?” he told the Senate President, Godswill Akpabio, who presided over the session.

Negotiation

Mr Ndume insisted that the bills should be withdrawn based on the earlier recommendations of the economic council and some governors.

He said that after the bill has been withdrawn, the presidential committee should negotiate with NEC, state governors, and traditional rulers to address the contending parts of the proposed law.

“As you say, or as the senators decide, we should not throw away the baby with the bath water. I would have preferred to remove the baby and throw away the water first, and that is to go with what the governors and NEC proposed that this bill should be withdrawn so far.

“And they are not saying that the bill should be killed. No. You withdraw the bill, work on it and then submit it to the National Assembly again after getting the buy-in of the governors and NEC and even our traditional rulers,” he added.

The senator also argued that the NEC and some governors have not withdrawn their positions on the bill.

“Mr. President, let’s be honest to ourselves. If we sit down here and work on this bill, assuming as it is now, what happens? Because the governors have not come out publicly to change their position; the traditional rulers have not sat down publicly to change their position, and NEC has not sat down to change their position.”

Issues

Mr Ndume admitted that the reform is a good development for the country but argued that some of the provisions will make the tax reform “contagious, contaminated and contradictory.”

He added, “The tax, something that looks attractive may not necessarily be that…If you transfer or move people from lower income, from VAT, and then you increase their taxes, the corporate taxes, the person that is manufacturing will now transfer the VAT to us.

“I’ve said one; that is the timing. Number two, the issue of derivation made the reform contagious, contaminated and contradictory in some cases because the Constitution has to be amended in order for some of these proposals to be effective.”

He suggested that the bills be withdrawn and amended before a final consideration at the National Assembly.

“So make some necessary amendments and then bring it back, and we can pass it in 24 hours. That is my position,” the lawmaker said.

Public Hearing

But Tahir Monguno (APC, Borno North) opposed Mr Ndume.

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Mr Monguno, the Senate Chief Whip, said that there was no need to withdraw the bills because the concerns of the NEC, governors, and traditional rulers would be addressed during the public hearing on them.

He, after that, urged the Senate to disregard Mr Ndume’s suggestions.

After the debate, the Senate President, Godswill Akpabio, put the bill’s passage for second reading to a vote, and the majority of the senators supported it.