TAX REFORM BILLS: NIGERIANS EARNING BELOW N1M EXEMPTED
TAX REFORM BILLS: NIGERIANS EARNING BELOW ₦1M ANNUALLY EXEMPTED FROM INCOME TAX Barring last-minute changes, the Senate will pass the controversial Tax Reform Bills today, exempting those earning below N1 million per annum from the tax net. Vanguard gathered that most lawmakers who were initially opposed to the bills have changed their position following clarifications given by the Federal Government’s tax executives including the Director-General, Budget Office, Tanimu Yakubu; the Executive Chairman, Federal Inland Revenue Service, FIRS, Zacch Adedeji; and the Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele. The tax executives, who appeared before the legislators, yesterday said among others that the bills were to tax prosperity and not poverty and that those earning less than One Million Naira a year would be exempted from income tax. They also said sharing of Value Added Tax, VAT, which favours states like Lagos, will be reviewed and made more equitable Deputy President of the Senate, Senator Barau Jibrin (APC, Kano North) said when he presided over yesterday’s plenary session that debate on the tax bills will continue today. Vanguard gathered that the bill will be listed as first reading, followed by an executive session by the Senators, and then expeditiously moved to second reading and passage.Recall that prior to the rushed break, the Senate had on Wednesday, October 30, 2024, listed the tax reform bills in the Order Paper for first reading, but stood it down along with other items for the screening and confirmation of Amb. Bianca Odinaka Odumegu-Ojukwu and six others as ministers- designate appointed by President Bola Tinubu. The tax reform bills were however not listed in the Order Paper the following day (Thursday, October 31, 2024) for any legislative action before the legislators embarked on a three-week recess. Anger, disquiet Earlier yesterday, anger and shouting matches enveloped the plenary midway as the controversial Tax Reform Bill suddenly came up for debate as it was not before the commencement of plenary stated as one of the items for business of the day.The session witnessed an intense confrontation as tempers rose over the sudden introduction of the Tax Reform Bill, a move that sparked a shouting match among lawmakers.Trouble started when the Senate leader, Senator Opeyemi Bamidele (APC, Ekiti Central) came up with a point of order after senators had finished with six items on presentation of bills for first reading and consideration of bills where two debated bills scaled second reading and were referred to relevant committees for further consideration. Bamidele cited Order 12(1) of the Senate Standing Order as amended to allow the Senate bring in knowledgeable and tax experts into the hallowed chamber to explain to them the tax reform bills that have been introduced by President Tinubu that are presently before the parliament. According to the Senate leader, the section was to allow the Director-General, Budget Office, Tanimu Yakubu; Executive Chairman, Federal Inland Revenue Service, FIRS, Zacch Adedeji; and Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, speak to the lawmakers. The Senate Leader’s submission was corroborated by Senator Jibrin Barau, who approved that the visitors be allowed into the Chamber by the Sergeant-At-Arms. Ningi, Ndume kick However, in a swift reaction, former Deputy Senate leader, Abdul Ningi (PDP, Bauchi Central), raised objections, citing Order 12 of the Senate Standing Rules.Ningi said there was no provision that allows non-Senators to enter the chamber while in session, as the order excluded categories of government officials being invited to enter the chamber for any form of presentation.Deputy President of the Senate, Barau Jibrin, who presided, ruled Ningi out of order, stating that the experts were invited to allow for open discussion on the matter. As soon as Ningi took his seat, another…
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