ACF Forms Expert Committee to Review Controversial Tax Reform Bills

Arewa Consultative Forum (ACF) has constituted a committee of experts to study the tax reform bills currently before the National Assembly and come up with recommendations that would be forwarded to appropriate organs of government. This was contained in a statement by the forum’s National Publicity Secretary, Professor Tukur Muhammad-Baba.

ACF said the current debate on the proposed tax reform by the National Economic Council and other critical stakeholders suggested that not enough consultation went into the preparation of the bills.

Meanwhile, a research by SB Morgen said the arguments on the tax amendment bills appeared to be “inherently more political than economic”.

The statement by ACF said, “ACF accepts that periodic public policy reforms are in line with the political and public administrative processes, in which regards reforms are indeed necessary and desirable.

“Nothing in the life of any community is static and policies must try to address emerging challenges, and take advantage of new opportunities, etc.”

The forum alleged impatience by supporters of the bills, especially the federal government, which wanted to have them speedily processed through the senate. It said the rush created and sustained the impressions of underlying interests.

The forum commended the senate for electing wider consultation with relevant stakeholders to address areas of concern on the bills.

It urged all citizens and every interest group to cooperate with the relevant senate committee tasked with the assignment, and called for restraint, decorum and mutual respect in the discussion of provisions of the bills.

ACF stated, “Debates have continued to rage on the pros and cons of the proposed bills, with positions being argued vehemently and stridently with passion. However, it is concerning that the emerging debates have become acrimonious, pitting sections of the country against each other.

“It is highly regretful that opinions have tended to involve unsavoury and often abusive words meant to denigrate, blackmail or intimidate anyone perceived, rightly or wrongly, as standing in support or opposing the bills or their specific aspects therefrom as are now under consideration in the senate.

“Needless to remind all, the proposed bills’ impact will have ramifications on every citizen and every part of the country. ACF notes that debates over bills are part and parcel of the public policy process, especially in democratic settings.

“Reforms meant to correct policy shortcomings or inadequacies must necessarily address all areas of concern that citizens may wish to raise.”

While urging every interest group to see the debates for or against any provisions in the bills as essential inputs into the policy process, ACF said expressions of contrarian opinions and views were necessary ingredients of the legislative process, in line with the dictates of democracy, to ensure the emergence of robust laws that will stand the test of time.

“Ultimately, the outcome of such laws emanating from the process will serve the interests of the whole country and not, as some insinuate, specific sections or interests, to the detriment of others.”

How APC Governors Outwitted Their Other Colleagues at Meeting

Details of the meeting between the All Progressives Congress (APC) governors and President Bola Tinubu, which ended in a deadlock, have begun to emerge.

A governor, who anonymously disclosed some of the contentious issues discussed at the Wednesday meeting, said because of the position of governors from the north, it was resolved that APC governors should meet Tinubu and brief him first.

At the meeting with Tinubu, APC governors were said to have tried to convince the president that the tax reform bills should be stepped down for more consultation with stakeholders.

The governors allegedly told the president that their meeting, which preceded the one with Tinubu, was contentious and it was resolved that they should meet him first before any further moves.

The source said the president insisted that a full legislative course should be followed to determine the fate of the tax reform bills.

It was at this stage that the APC governors decided to attend the Nigeria Governors Forum (NGF) meeting at their Maitama office, according to the source.

Some of the APC governors, including their chairman, Senator Hope Uzodinma, arrived in an Imo State liaison office bus.

A decision of no comment or communique was reached when they were at the Imo liaison office bus, it was gathered.

The meeting started about 10pm with some of the northern governors still maintaining their position.

Sources revealed that the governors failed to reach an agreement on the contentious tax reform bills presented by Tinubu to the National Assembly.

The new tax bills had met criticism from some quarters, including the 19 northern governors, who rejected sections of the bills and called for their withdrawal. The National Economic Council (NEC) also rejected the bills.

The meeting, attended by 15 governors, mostly from APC, began about 10pm and ended at 11pm.

Governors Alex Otti of Abia State and Chukwuma Soludo of Anambra State were said to also be in attendance.

The governors dropped from their normal practice of addressing the media after the meeting.

On why there was no communique, the source said, “The APC governors are in majority and it would be unfair for us to outright overrule the president, who is our leader.

”We believe that with time, reason will prevail as the senate has already set up a committee headed by Senator Abba Moro to interface with other stakeholders as well with the Attorney General of the Federation.

”It is political immaturity to overrule the president. By coming up with a communique that the governors are divided will only fuel the crisis and overtly overheat the system. That was why we felt that there would be no communique.”

SBM: Debate More Political Than Economic

A research by SB Morgen indicated that the debate over the tax amendment bills appeared to be “inherently more political than economic”.

The study said Nigeria’s tax system needed the proposed reforms, and urged the senate to actively support consultations in the new year and bolster efforts by the chairman of the Presidential Advisory Committee on Fiscal Policy and Tax Reform, Mr. Taiwo Oyedele, to refine the bills and ensure their successful passage.

The SBM report was titled, “Much Ado about Taxes: No Taxation Without Representation? Or Oppressive and Unfair taxes?”

It pointed out that the suspension of action on Tinubu’s tax reform bills by the senate on December 4 further highlighted the complexity of implementing fiscal changes in a politically and economically challenging environment.

The report stated that the Revenue Reform Bills 2024 sought to amend/enact the Nigerian Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, the Nigeria Tax Bill, and the Joint Revenue Board Establishment Bill – and reduce the tax burden for 90 per cent of Nigerian workers as well as streamline tax administration.

The report said if implemented, the reforms could provide the needed relief for low and middle income earners by reducing tax pressures, potentially improving disposable incomes and consumer spending.

It stated, “Various voices, especially from the Northeast and Northwest geopolitical zones, have expressed concerns about the impact of the tax reforms on economic equity and regional development.

“Some northern leaders fear that the tax reforms could disrupt the balance of fiscal federalism, potentially centralising tax authority and diminishing state revenues, despite Taiwo Oyedele, the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, assuring that all states in the country would benefit from the proposed tax reform.

“The senate suspended hearings on the bill until the new year, providing time for essential political engagements and negotiations to secure its passage. This move reflects the Senate’s attempt to balance the need for reform with addressing public concerns.

“Clear and decisive action is now required from political authorities, including the presidency and the coordinating minister of the economy, to get the consultations through.”

The study revealed that most respondents were aware of the proposed reforms and generally viewed the tax reforms favourably, particularly regarding the potential benefits for their businesses.

It said, “However, a significant concern was raised regarding the gradual increase of the Value Added Tax (VAT) rate from 7.5 per cent to 15 per cent by 2027. Respondents feared this tax hike could exacerbate inflationary pressures.

“Some respondents also recognised that the tax reform bills could incentivise states, particularly in the North, to enhance their revenue generation capabilities, fostering greater industrial competitiveness.

“Respondents agreed that the bills should be passed promptly, provided that contentious clauses and issues related to the VAT revenue-sharing formula are adequately addressed.

“Furthermore, respondents emphasised the critical need for increased public engagement, awareness, and education regarding the tax reform bills.

“They suggested that this outreach effort should be conducted across various media channels, including the use of local dialects, to effectively communicate the potential benefits and drawbacks of the proposed reforms.”

Chuks Okocha, James Emejo and  John Shiklam

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