Reps clash over Ekiti lawmaker’s support for tax reform bills

The House of Representatives was thrown into a rowdy session following the open declaration of support by the spokesperson of the House, Akintunde Rotimi Jr., for the controversial tax reform bills initiated by President Bola Ahmed Tinubu.

Trouble started after Rotimi Jr., representing Ekiti North 1, Ikole/Oye, drew the attention of his colleagues to the fact that the Ekiti State caucus in the National Assembly had already endorsed the tax reform bills as he rose to present the report on a bill by the Committee on Nigerian Content Development and Monitoring on behalf of Boma Goodhead.

“I am from Ekiti State, the very first state in the National Assembly caucus to unanimously endorse the tax bill,” he said, incurring the wrath of members of the House, mainly from the northern part of the country.

The antagonists of the tax reform bills disrupted proceedings for over five minutes, angrily venting their anger and chanting, “No!”

Speaker Tajudeen Abass, who presided over the plenary, waded into the matter, calling on the aggrieved lawmakers to exercise restraint, arguing that Rotimi Jr. was just expressing his personal opinion on the tax bill.

“He was just speaking on a light note. Let us not take it seriously,” Abass pleaded with the angry lawmakers, even after Rotimi Jr. succumbed to pressure and withdrew his statement on the bill.

The Speaker, reading the mood of the vast majority of members, went on to caution Rotimi Jr. to restrict himself to presenting the report on behalf of Goodhead.

He said, “Hon. Rotimi, you know this is a controversial issue. I wouldn’t want you to mention things that are not relevant to the subject matter. So please, on your behalf, I withdraw that statement you have made. Please go ahead and raise your motion.”

READ ALSO:Tax reform bills will worsen plight of Nigerians, Kano Rep warns

A subsequent attempt by Rotimi Jr., the spokesperson of the House, to present the report of the Nigerian Content Development Board met a brick wall, as he was shouted down by antagonists of the tax reform bills.

One of the antagonists, Dr. Ghali Mustafa Tijjani, in an interview with The Guardian on Monday, warned against imposing more taxes on Nigerians.

He insisted that the proposed tax reform bills are not only capitalistic in nature but would also render ordinary Nigerians poorer.

Tijjani, representing Gaya/Albasu/Ajingi Federal Constituency of Kano State on the platform of the opposition New Nigeria Peoples Party (NNPP), urged the authorities to explore other avenues to raise revenue for the country.

The lawmaker stressed the need for authorities to block revenue leakages and harness the vast mineral resources spread across the country to achieve this objective.

Tijjani, who threw his weight behind the position of the Northern Governors Forum on the tax reform bills, called on the authorities to place emphasis on infrastructure development rather than embarking on wasteful expenditures on projects that have no immediate benefits for Nigerians.

Calling for tax holidays for Nigerians, he faulted the argument that low-income earners would be exempted from bearing the burden of the proposed tax reforms.

He said: “For you to tax people, they need to have the purchasing power. Currently, the policies of this government are too harsh and against the interests of the masses. For them to bring tax reform bills now, I think they are wrong.

“They should be thinking of even giving tax holidays, whereby small and medium companies could at least have space to generate capital and employ labor, which will give our people the opportunity to be well-employed and also have the purchasing power to contribute to the economy.

“People are now hungry. People don’t have employment. In fact, look at the government agencies—they are all retrenching workers. How do you think the new tax reform system will not be transferred to the final consumer?”

Continuing, he argued: “The four bills, to me, are ill-timed. The policies of the current government have not helped the poor. Similarly, there are two major areas of concern: derivation and the increase in the VAT system. If you take the VAT, Section 146 talks about the increase in VAT from 7.5% to 10%, to 12%, and to 15% by 2030.

“And nobody will tell you that this will not be transferred to the final consumer. Yes, you have talked about exemptions for certain cadres or income levels, but the companies will transfer the VAT or taxes to the final consumer.

“The economy is in a mess. The inflation rate is serious in the country. You removed the subsidy without considering how to support inflation. At the same time, apart from blocking leakages, the government should also think of tax holidays and stop unnecessary expenditures.

“For instance, taking 15 trillion naira to start the Lagos-Calabar Coastal Road is unnecessary expenditure. Nigerians are hungry. Invest in small-scale businesses, so Nigerians can get employment. Once everyone is employed, skills can contribute, and there will be no issue of unnecessary expenditures. There is mismanagement in this government.”