Senate Leader underscores importance of tax reforms to economic restoration
The Senate Leader, Opeyemi Bamidele, has emphasised the importance of tax reforms as part of a broader legislative agenda aimed at economic restoration and national development.
In his Christmas message on Wednesday, Bamidele underscored the need for a collective effort to address Nigeria’s challenges, particularly through innovative legislative measures.
Drawing from the teachings of Christ, the Senator called for reflection and compassion during the season, urging Nigerians to embrace hope and contribute to the nation’s growth.
He reiterated the commitment of the 10th National Assembly to enact laws that create an enabling environment for businesses, attract investments, and alleviate the economic burden on citizens.
The Senate Leader added, “For the record, the Tax Reform Bills, when finally enacted, will utterly exempt all employees earning ₦1,000,000 annually or ₦83,000 monthly; exempt start-ups, shared services, and technologically driven services from taxation; and recommend zero VAT on essential services and consumables.
“Even though it reviews the derivation formula to 60%, this proposal is guided purely by the principles of equity, fairness, and justice.
“The new model will eventually guarantee a significant increase in VAT distributable to every state of the federation.”
“As credible data have shown, for instance, the new model recommends 6.17% to Kano compared to 0.89% currently. It recommends 1.21% for Zamfara compared to 0.05%. Currently, Lagos gets 80.26%, but the new model only recommends 15.28%, representing an 81% decrease. “Under the new model, Rivers’ share will also decline from 7.74% to 4.6%, accounting for a 41% decrease. With these figures, the narrative around the new derivation model is utterly incorrect and unfounded,” Senator Bamidele noted.
