By Nathaniel Zacchaeus, Cross Udo, and Chukwudi Obasi, Abuja
The federal government has warned against injecting unnecessary ethnic and regional slurs into the debate on proposed tax reform bills.
The Minister of Information and National Orientation, Mohammed Idris, said in a statement yesterday that President Bola Tinubu was committed to accountability on the tax bills and would always act in the interest of the Nigerian people.
This came as President Tinubu directed the Ministry of Justice to work closely with the National Assembly to address Nigerians’ concerns.
Following the debate over the bills, the House of Representatives erupted into a rowdy session midway through plenary when the House spokesman, Akintunde Rotimi, said the Ekiti caucus of the National Assembly had unanimously endorsed the tax bills.
But Idris, in the statement, assured those with mixed feelings about the bills that the fiscal reforms would not impoverish any State or region of the country or lead to the scrapping or weakening of any federal agencies.
The statement reads in part, “The robust nationwide debate on the new tax reform bills currently before the National Assembly is welcomed and commendable. It is inspiring to see Nigerians from all walks of life coming out to express their views and opinions on these matters of critical national importance. This is the very essence and meaning of democracy.
“I call on all commentators and groups to keep up the spirit of informed engagement and to strive to be respectful and understanding at all times despite the diversity of opinions. In the spirit of democratic engagement, there should be no room for name-calling or the injection of unnecessary ethnic and regional slurs into this critical national conversation.
“Similarly, it is important to be aware that a lot of misinformation and fake news is circulating around the tax bills and the overall reform agenda of the Tinubu Administration. The fiscal reforms will not impoverish any State or region of the country, nor will they lead to the scrapping or weakening of federal agencies.
“Instead, they will bring relief to tens of millions of hardworking Nigerians across the country and empower and position our States and the 774 Local Governments for sustainable growth and development.”
Idris said that President Tinubu was implementing an ambitious fiscal reform agenda that would devolve more resources into Nigeria’s state and local governments and ultimately to the Nigerian people in the spirit of harnessing democracy that works for the people.
He said, “It is pertinent to state that the government has nothing sinister to warrant the suggestion that the process is being rushed. In line with the established legislative procedure, the Federal General welcomes meaningful inputs to address the grey areas in the bill.
“In this vein, President Tinubu has already directed the Federal Ministry of Justice and relevant officials who worked on the drafts to work closely with the National Assembly to ensure that all genuine concerns have been addressed before the bills are passed.
“We are indeed witnessing, at this moment in the history of Nigeria, the most far-reaching, impactful, and beneficial set of fiscal reforms that Nigeria has seen in decades.
“In addition to the four tax bills being debated and deliberated upon, there is also the 2023 Supreme Court ruling on financial autonomy for local governments, which will significantly empower the tier of government closest to the Nigerian people.
“In all, these reforms will not only facilitate increased revenues (without imposing additional tax burdens on the people), they will also make it possible for citizens to demand and enjoy greater accountability in the management of public resources at all levels of government.
“President Tinubu and the administration will continue championing policies that close the loopholes and gaps through which Nigeria’s valuable public resources have been frittered for decades.
“On top of this necessary foundation, the resources being conserved and realized from these reforms will be invested in critical infrastructure (healthcare, education, transportation, digital technology, etc.) and in social investments that will benefit all Nigerians and ensure that no one is left behind. This is the promise and the reality of the Renewed Hope agenda.”
*Reps in rowdy session
The House of Representatives erupted into a rowdy session midway through plenary when its spokesman, Akintunde Rotimi, said the Ekiti caucus of the National Assembly had unanimously endorsed the tax bills.
Rotimi was to present a report on two bills from the House Committee on Nigerian Content Development and Monitoring on behalf of the committee chairman, Boma Goodhead.
He said, “My name is Akin Rotimi. I represent the good people of Ekiti, a Federal Constituency made up of Oye and Ose. I am from Ekiti State, the first state to unanimously adopt the tax bills.”
His introduction created an uproar as they protested voices from members who felt offended by the introduction.
Many of them kept chanting “No,” creating an atmosphere of rowdiness on the floor.
Several attempts by the Speaker, Tajudeen Abbas, to calm the members did not yield results.
The members declined the Speaker’s apology and demanded Rotimi continue presenting the two reports for consideration.
Rotimi apologised to the members, saying his introduction did not affect the substantive matter.
He withdrew the introduction, but the members were not appeased and continued raising their voices.
The Speaker asked Rotimi to restrict himself to the report he was to present, saying, “Restrict yourself to the person you are representing here. We are not talking about tax bills. Hon. Rotimi, you know this is a controversial issue.
“I don’t want you to be mentioning things that are not relevant to the subject matter. On your behalf, I withdraw that statement that you have made. So, on your behalf, I have withdrawn that statement you made, and please let us not repeat it. So, go ahead and raise your motion.”
After the Speaker appealed and withdrew his earlier introduction, Rotimi was allowed to present the report on the Nigeria Content Development Board. However, members would not allow the motion to be seconded even though the Speaker tried to get someone to second it, saying it had nothing to do with the tax bills.
However, Rotimi was forced to postpone the presentation of the report for consideration until the next legislative day.
Coming under privilege, a member of the House from Kano state, Ghali Mustapha, complained about a statement credited to the Deputy Spokesman of the House, Phillip Agbese, saying he must apologize to the House and resign his position.
Under order 6 Rule 5, he said, “I woke up this morning to see an online publication from the deputy spokesman of the House. The publication is in Daily Trust, and it reads ‘those opposed to tax reform bills now seeking speedy passage.’
“I am one of the first persons that opposed this vehemently, and the deputy spokesperson did not contact me as a stakeholder and did not seek my opinion on this. The heading insinuates that there is an inducement somewhere for those who oppose these tax bills.
“Therefore, I am calling for the withdrawal of this statement and an investigation and apology in print media because this is detrimental to me, my people, my religion, and the region where I come from. Mr Speaker, this is a breach of privilege and is unprofessional, unethical, and immoral.
“I am calling (chorus from members, we are calling) for this matter to be investigated to find out who and who are those opposed to this bill that are now asking for speedy passage of these bills. We are also calling for his resignation as deputy spokesperson of this House.”
Sada Soli (APC, Katsina) said the investigation of the Deputy Spokesman’s comment should be referred to the ethics and privileges committee.
In his ruling, the Deputy Speaker, Benjamin Kalu, commended the Kano lawmaker for his approach, saying, “I want to thank you for the approach you used. That is parliamentary, and we are having a conversation. You have relied on our rules, and it will be well-documented that your voice has been heard. I want to commend you for following this line of action.
“But the rule is clear that once a point of privilege is moved, it is not debated. You have asked for this to be investigated. But you did not tell me whether to move it to the ethics and privileges committee, which is why Sada Soli came with his own. It is not in your prayer. There are many ways to investigate this. We will ensure that the House notes all your concerns and that the right action is taken.
“It is not in your prayer; we will note it and take it from there. I can assure you that justice will be done to this, and if there is any retraction to be made, it will be made. You cannot speak on behalf of the House without the permission of the House.”
*Wider consultations ongoing on tax reform bills, says Senator Musa
Senator Sani Musa, Chairman of the Senate Committee on Finance, said his panel will embark on wider consultations with critical stakeholders before a public hearing over the landmark tax reform bills.
Musa disclosed this while briefing journalists yesterday in Abuja.
He said the tax reform bills are sensitive fiscal documents that should be handled with care, even though he said it was the right decision.
He said, “Another aspect that is very sensitive is tax reform. Every country that wants its economy to change will, from time to time, have to look at those parameters to move the country forward.
“I have said it times without number on the floor that tax is not a tool of economic growth; what you will see that will change the face of the economy of any nation is the production, and it is out of that production that you can make and realize the taxes.
“So, for me, the issue of tax reform is before us, and we are conducting a wider consultation. It’s not about this region or that region. For me, it’s about Nigeria, and what is good for me should also be good for my brothers, while what is good for my brothers should also be good for me.
“Nigerians should allow the committee and the National Assembly to do what is needed, and at the right time, we shall make the right statement about this.”
*Jimoh Ibrahim says rich Nigerians not paying adequate tax
Similarly, Senator Jimoh Ibrahim, the Senate Committee on Inter-Parliamentary Relations chairman, has advocated the imposition of transactional taxes on wealthy Nigerians.
At a press briefing in Abuja, he told journalists that the rich Nigerians must pay adequate taxes to the Federal Government, especially when acquiring luxury items.
The lawmaker, who represents Ondo South Senatorial District in the National Assembly, disclosed that he is working on a bill that would impose a transactional tax on the rich.
He said, “The rich in Nigeria aren’t paying adequate tax. They need to pay more. It is comfortable for them to pay. They say they generate employment but must pay more for their luxury assets.
“This is the area we should develop. I am considering a law imposing a transactional tax on the rich. The government provides incentives for your businesses. The GDP to tax ratio is 18% in Nigeria. About 72% are included in the tax net.
“We should be worried that 72% are not in the tax net. I am not saying we should go and tax the poor population, but the rich need to do more in these difficult times,” Ibrahim added.
