By Christiana Ekpa
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, on Monday said the proposed tax reform bills before the National Assembly were not aimed to undermine any region of the country.
He said this at an interactive session on the proposed tax reform bills organised by the House of Representatives on Monday.
It would be recalled that President Bola Tinubu in September transmitted four tax reform bills to the National Assembly for consideration.
This had followed the recommendations of the Presidential Committee on Fiscal and Tax Reforms headed by Taiwo Oyedele for the review of existing tax laws.
At the Monday hearing, Oyedele argued that the proposal would only ensure efficiency and give more revenue to states where goods and services are consumed.
Oyedele explained that currently, under Section 40 of the VAT Act, VAT revenue is allocated 15 per cent to the Federal Government, 50 per cent to the States and FCT, and 35 per cent to Local Governments,
“There is no negative thinking about any region or anything,” he said
Speaker of the House of Representatives, Abbas Tajudeen said the tax reforms bills presented by President Bola Tinubu to the National Assembly will be diligently scrutinised in the best interest of Nigerians.
Abbas said the House was yet to take a definitive position on them.
He said the House owes Nigerians a duty to ensure that the outcome of the bills is in the national interest.
The Speaker said the four tax reform bills represent critical proposals from the executive to expand Nigeria’s tax base, improve compliance, and establish sustainable revenue streams for the nation’s development.
He explained that the purpose of the interactive session is to provide members with a comprehensive understanding of the proposed bills and deepen their appreciation of their provisions, commence constructive dialogue on contentious or controversial areas, and build the consensus.
He said the interaction will help identify areas that need amendment, clarification, or improvement as well as consider the compatibility of these bills with the 1999 Constitution (as amended) and other extant laws.
The Speaker said tax reforms form part of the provisions of the House Legislative Agenda because of their central role in achieving sustainable economic growth and development,.
He stressed that in every modern state, taxes are the bedrock of public revenue, providing the resources required to deliver education, healthcare, infrastructure, and security.
Speaker Abbas lamented that despite being Africa’s largest economy, Nigeria still struggles with a tax-to-GDP ratio of just 6 percent—far below the global average and the World Bank’s minimum benchmark of 15 percent for sustainable development.
This is a challenge, he said, that must be addressed if the country is to reduce its reliance on debt financing, ensure fiscal stability, and secure our future as a nation.
He explained that the proposed tax reform bills aim to diversify our revenue base, promote equity, and foster an enabling environment for investment and innovation.
He said as representatives of the people, they must approach these reforms thoughtfully, understanding their potential implications for every segment of society.
He said taxes should be fair, transparent, and justifiable, balancing the need for public revenue with the burdens they impose on individuals and businesses.
He said further that pre-legislative scrutiny is a well-established practice in many parliaments worldwide as it allows lawmakers to thoroughly review proposed legislation, address ambiguities, and ensure alignment with constitutional provisions before formal consideration.
He said the controversies surrounding these bills in the media, civil society, and among governance stakeholders are re a reflection of their importance.
Such debates, he said, are healthy and necessary in a democracy.
He commended the Presidential Committee on Tax Reforms and Federal Inland Revenue for their work in presenting these proposals and asked members to approach this session with an open but critical mind.
