The unending twists and turns over the controversial Tax Reforms Bills continued yesterday when the Senate during its plenary contradicted itself over Wednesday proceedings on the matter.

While reaffirming its unwavering commitment to advancing the tax bills, the Red Chamber clarified that no part of the legislative process has been halted or withdrawn.

During Thursday’s plenary, Senate President Godswill Akpabio emphasised the upper chamber’s dedication to representing Nigerians’ interests, declaring it will not succumb to external pressures.

Akpabio, while addressing a point of order raised by Senate Leader, Opeyemi Bamidele (APC, Ekiti Central), refuted media reports claiming that deliberations on the bills had been suspended. “The Senate cannot be bullied. Any reform that serves the interest of Nigerians will proceed,” he stated.

Bamidele had countered the Deputy Senate President, Barau Jibrin (APC, Kano North), saying the Senate has not suspended debate on the tax reform bills. Barau, who presided over plenary on Wednesday, had announced that the Senate committee on finance chaired by Senator Sani Musa (APC, Niger East) was to “put on hold further action on it (bills) – public hearing and other issues until we resolve these issues.”

Akpabio assured that the Senate would approach the bills with due diligence. To ensure comprehensive scrutiny, the upper chamber formed a special committee representing Nigeria’s six geopolitical zones to collaborate with the Attorney General of the Federation (AGF), Lateef Fagbemi, on resolving contentious issues.

“Public hearings and consultations with stakeholders, including governors, religious leaders, and business leaders, are crucial to addressing uncertainties,” Akpabio said, adding, “if six weeks are insufficient, we will extend the time. We are committed to transparency and addressing all concerns.”

The Senate leader disagreed with reports suggesting that actions on the controversial bills have been suspended. Bamidele issued a firm position that the tax reform bills remain active and under legislative consideration. He emphasised that the bills, being executive in nature, can only be withdrawn by the executive branch itself.

“The people understand our role in the Constitution. Any attempt from any quarter to intimidate the Parliament, will be undemocratic, and we will not allow ourselves to be distracted. But we will encourage consensus. We will encourage discussions and engagement at all levels,” he said.

Barau, however, at yesterday’s plenary said: “The Senate is known to be the stabiliser of every country. When there are difficulties and disagreements, the Senate of this country comes in with solutions through dialogue and consensus at all times to solve such problems. Because of this, we decided to put politics, ethnicity, and regionalism aside to sit among ourselves and find the way forward with respect to the issues surrounding the tax reform bills. It is on this note that we extended our view to the executive arm of government and it was agreed that there should be a forum to sit down to look at the areas that are creating disagreements to resolve them so that the entire country will remain united.”

Akpabio then went ahead to rejig senators delegated by the Senate on Wednesday to meet with the Federal Government’s team to resolve concerns raised on the bills.

He said the Senate Chief Whip, Mohammed Tahir Monguno, has been removed from the committee and replaced with Senator Kaka Shehu Lawan, who represents Borno Central Senatorial District.

The outcome of the Senate leaders’ meeting with the AGF on harmonising concerns raised over the bill was still being awaited as at press time last night.

Meanwhile, Lagos State Governor, Babajide Sanwo-Olu, has dismissed claims that the state will significantly gain from the Federal Government’s proposed tax reform, stating that Lagos is in an “extremely comfortable” position.

He disclosed this to newsmen while attending the Africa Investment Forum, Market Days 2024, in Rabat, Morocco.

Sanwo-Olu acknowledged that while Lagos may experience some losses, it also stands to gain a greater opportunity to play a more substantial role. He underscored the importance of reforms, despite facing opposition from some groups.

“What those uncomfortable with the tax reform are not willing to accept is that there is no way of making an omelet without breaking an egg. You cannot make changes if the reforms are not set in. I have advised that people should take time to read the provisions of the reform very well and to fully understand what they’re trying to do.

“I’ve seen comments around. Comments like Lagos is going to be the major beneficiary. It is not true. Lagos is actually going to be shaped off in some places, but on a larger scale basis, we see it as a global thing for a better governance structure. All of us will play better, and we’ll be able to discipline ourselves more. One of the things that you will see is that you need to work harder for you to get the full benefit of the reform. So it’s not just an easy kill,” he said.

Former Ekiti State Governor, Kayode Fayemi, yesterday said for the controversial bills to see the light of the day, it has to enjoy political acceptability not only the technocratic influence.
Fayemi, who is a former minister under the All Progressives Congress (APC), urged the Bola Tinubu-led Federal Government to consult all the stakeholders.

Fayemi said though the government had done the right thing by initiating the bill, proper consultation must be made by involving the critical stakeholders to enjoy political acceptability.

The former chairman of the Nigerian Governors’ Forum made the call while presenting a keynote speech during Yemi Farounbi at 80 lecture in Ibadan.

Speaking on the topic: ‘The future and challenges of the Nigerian nation’, Fayemi admitted that government meant well by initiating the bill adding that now that the bill had passed through technocrats, the state governors who are critical stakeholders must be actively carried along.

“One thing you discover in governance is that good intentions are not enough. You may have a good policy that is ventilated in a bad way which will ultimately result in failure. What is left for the tax reform bill is that it has not benefitted from enough consultation and engagement with critical stakeholders.

“Once you finish with the technocratic exercise, you need to subject it to a political acceptance. If the political acceptability ratio is zero, the technocratic influence, no matter how excellent, would come to naught. But, we must not throw the baby out with the bath water.”

In another development, a bill seeking to exempt companies recording losses from paying the minimum income tax has passed the second reading in the House of Representatives. The bill aims to amend the Companies Income Tax Act to “provide adequate security and guarantee” for businesses and companies that record losses in each “assessment year”.

The bill, which is sponsored by Oboku Oforji from Bayelsa, scaled through the second reading during plenary on Thursday. Section 33 of the extant Act states that companies having no taxable profits for the year shall pay a minimum tax. Such tax shall be 0.5 percent levied on the gross turnover of the company excluding franked investment income.

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The proposed legislation seeks to introduce a new subsection to the aformentioned section to exempt companies that record losses in the “assessment year” from paying the minimum tax.

Leading the debate, Oforji said the objective of the amendment is to provide fairness to taxpayers to ensure continued economic growth, especially in the wake of the economic realities that have resulted in a lot of companies recording losses and having to pay minimum tax despite the losses incurred.

“This amendment primarily proposes an exemption for such categories of companies under the Companies Income Tax Act in each assessment year,” he said.

James Faleke, chairman of the committee on finance, supported the bill, saying the amendment is part of the tax reform bills proposed by President Tinubu Lawmakers voted in support of the bill when it was subjected to a voice vote by the Speaker, Tajudeen Abbas.