The widely criticised tax reform bill of President Bola Ahmed Tinubu has concluded its second reading with members of the house of Representatives criticising the manner of its passing as well as what it stands for.
A member of the House of Representatives from Borno State, Ahmed Jaha, raised concerns over procedural breaches in the passage of the tax reform bills, stating that more clarity was needed on certain provisions.
Jaha who represents Chibok/Damboa/Gwoza Federal Constituency spoke to journalists after the bill scaled second reading in the House of Representatives, where he questioned the manner in which the bills were transmitted to the National Assembly.
He said: “First of all, the bills were transmitted despite rejection by the members of the National Economic Council, rejection by elders across the country, and rejection by the Governors’ Forum, particularly the Northern Governors’ Forum,” he said.
Jaha also noted that some provisions of the bill required revisitation for fairness and good governance.
He admitted that the bill sparked significant controversy in the House of Representatives, as members were divided over its contents.
Despite his reservations, Jaha expressed agreement with some aspects of the tax reforms. He proposed maintaining the status quo, but noted that he would support ceding 20 percent of VAT revenue based on generation derivation rather than headquarters location.
“My position as a person is to maintain the status quo. The highest I can concede as far as my opinion and that of my constituents is to cede 20 percent based on derivation or based on generation derivation. Wherever these companies have their headquarters, 20 percent can be given to them,” he stated.
He also supported the retention of key agencies, stating, “There is a consensus among all the honourable members that NITDA, NASENI, and TETFUND are not going to be terminated, bearing in mind their importance to national development.”
Jaha however criticized a provision in the bill that allows the Chief Executive Officer of the Nigerian Revenue Service to simultaneously serve as Chairman of the Board.
“You cannot be a judge in your own case. As the saying goes, power corrupts, and absolute power corrupts absolutely,” he argued.
He further pointed out that Section 141 (1) of the bill appears to elevate the tax law above the Constitution of Nigeria, which he believes is legally problematic.
Jaha also strongly opposed the introduction of inheritance tax, stating that it is against the provisions of Islam, Christianity, and traditional religions.
“In Islam, you are not even allowed to take even a packet of pure water out of inheritance and give it to somebody that is not the heir or entitled to that particular inheritance,” he said.
He maintained that imposing a tax on a deceased person’s estate was contrary to Islamic principles and also disrespected the beliefs of other faiths.
Similarly, a member representing Jibia/Kaita Federal Constituency in the House of Representatives, Sada Soli, has stated that President Bola Tinubu’s tax reform bills was not drafted by professionals.
The lawmaker stated that Tinubu was poorly advised on the tax reform bills during an interview on Channels TV’s Politics Today on Wednesday.
He insisted that the bills did not follow the due drafting process. The lawmaker claimed that the North acted on the bill in the interest of Nigeria.
He said, “Let us be fair to Mr President. For a President to take a decision, he has to rely on certain advice. I think the president was poorly advised. People that drafted these bills in the first place, the draft was poorly done because they were referring to the bills as acts. When I read these bills I know that they were poorly drafted and were not subjected to professional drafters.
“We have to be fair to the President. He is an individual. He was advised by his consultants. And the bill did not go through the normal process it should have followed. Bola Tinubu, anybody that knows him knows his political sagacity.
“He is an inclusive politician. I have to be fair to him. When he realizes that the bills are capable of causing some problems, he subjected them to all scrutiny. Governors looked at them. He said that the Senate should go and sit down with the Attorney General of the Federation. He discussed with the Speaker and members of the House of Representatives to widely look at them, before he tried to consider the bills.”
With the second reading concluded, the tax reform bill will now proceed to committee review, where lawmakers are expected to deliberate on the raised concerns and consider possible amendments before final passage.
