The Senate has suspended action on the Tax Reform Bills brought before it by the President Bola Tinubu-led federal government.
The Senate has instructed the Committee on Finance to postpone the public hearing until the public agitation is resolved.
Additionally, a special committee has been formed to work with the executive branch and the federal government to resolve issues related to tax reform bills.
This was announced by Deputy Senate President Jibrin Barau during the plenary on Wednesday.
There have been a lot of disputes regarding the tax reform bills since their introduction to the National Assembly.
The bills are the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; and Nigeria Tax Bill, 2024.
Northern governors have rejected the bills, calling them anti-democratic.
Following this, the National Economic Council proposed that the tax reform bill be pulled from the NASS for more consultations.
Amidst the issue, Senator Shehu Buba (APC, Bauchi South), in an interview with the British Broadcasting Service, Hausa Service, revealed Northern Senators decided to recall the tax reform bills.
He said, “These bills are complex and require thorough review by tax policy experts.”
He asserted that northern politicians are fiercely opposed to the proposed “derivation” formula in the Value-Added Tax (VAT) distribution scheme, claiming that it will disproportionately affect northern states.
Additionally, on Tuesday, the president directed the Ministry of Justice to communicate with the judiciary.
Speaking about the controversies, the Deputy Senate President stated that the delegation will meet at the National Assembly on Thursday to discuss all of the issues that have caused the controversy.
Barau said, “On the tax reform bills currently before us, we acknowledge that the Senate remains the highest legislative assembly in this country.
“The Senate comprises men and women of wisdom and experience, entrusted to legislate for the peace, stability, and development of the nation.
“The Senate of the Federal Republic of Nigeria, like similar bodies globally, serves as a stabilising force in times of difficulty or disagreement. Through dialogue and consensus, the Senate has consistently provided solutions to national challenges since 1999.”
He added, “In this regard, we have decided to set aside politics, ethnicity, and regionalism to work together on resolving the issues surrounding the tax reform bills.
“In collaboration with the Executive Arm of Government, we agreed to establish a forum to identify and address contentious areas to ensure national unity and progress.
“Before the introduction of these bills, we faced numerous challenges, including insecurity and economic issues.
“The President has been working to address these problems, and we are committed to supporting these efforts while tackling global economic challenges. We also agreed that no other issues should aggravate the country’s current difficulties.
“It has been mutually decided between the Executive and the Senate to engage the Judiciary to sort out these matters.
“the Attorney General of the Federation will be involved in discussions to identify and resolve areas of disagreement for the nation’s benefit.
“Tomorrow, the committee established by the Senate, along with its leadership, will meet with the Attorney General to address these issues.”
Barau further instructed, “Consequently, the Senate Committee on Finance has been directed to pause further actions on public hearings and other matters related to the tax reform bills until the issues are resolved.”
