Tax reform bill: Ali Ndume as “spokesman” of northern senators, by Kola Amzat

Suddenly, Ali Ndume, a senator representing Bornu South Senatorial Districts has emerged as mouthpiece of senators of northern extraction at the national assembly.

Covertly or overtly, he has become their rallying point. At least, this was the deduction made by the generality of Nigerians when the Bornu senator appeared for an interview session in a Channel TV’s political program a couple of weeks ago. 

During the program with a popular TV presenter, he asserted that the Executive’s Tax Reform Bill presently at the upper chamber for deliberation, with the expectation of being passed into law, is dead on arrival (DOA), as northern senators would eventually collaborate to shut it down.

He unequivocally confirmed that he’s speaking for the entirety of upper chamber lawmakers of northern descent, as well as speaking as a Senator of Federal Republic of Nigeria. 

Considering the political antecedent of the senator, especially his belligerent postures to the executive arm, and even, diverse issues at the national assembly, its curious why very distinguished senators from the north, some of whom have been governors of their state before–Adamu Aliero, Danjuma Goje, Ibrahim Dankawambo, Jubril Isah, Sani Abubakar Bello, Umar Sheu Buba and coy could be so comfortable to opt for Ali Ndume to be their rallying point on the critical issue of Tax Reform that has potential wide-scale implication on the nation revenue generations and more importantly, the economy.

For emphasis, the four (4) key components of the Tax Reform Bill are as under-listed:  

First is the Nigeria Tax Bill 2024 that seeks to harmonize all tax laws by situating them into one clear framework and making it seamless for corporate entities and people. The Bill aims to create a fairer and more transparent tax process, and ultimately promoting a better relationship between the government and taxpayers.

Second is Nigeria Tax Administration aspect that aims to simplify tax collection and clarify tax laws, by way of standardizing tax processes and compliance requirements. It seeks to reduce challenges for taxpayers and disputes with the government, essentially by making the procedures much clearer thereby afford taxpayers better understanding of their responsibilities, with the ultimate aim of improving compliance.

Third is the Joint Revenue Board (Establishment) Bill that seeks to create a new model to handle perennial tax disputes with tribunals and a tax ombudsman, with the ultimate objective of promoting fairness and equity in the tax system.

Fourth is Nigeria Revenue Service (Establishment) Bill, which seeks to replace the existing Federal Inland Revenue Service Act. When operational, The Nigeria Revenue Service will serve as sole collector of domestic and international revenues. Indeed, NRS will be the Agency responsible for the collection of all government revenues, including those currently been managed by Oil & Gas sector, Customs, Ports and other Agencies, thereby making Revenue Collection Agency more powerful than CBN and even, NNPCL.

Key fall-outs of the Tax Reform Bill remains:

A progressive tax payment model that will ensure zero tax on an income of ₦800,000, 15% on income of next ₦2.2 million, 18% on income of next ₦9 million, 21% on income of next ₦13 million, 23% on income of next ₦25 million and 25% on income of next ₦50 million.

However, the most contentious issue of the reform remains:  states receiving VAT collections will be retaining significant proportion of the revenues, a model that northern leaders feared, would have significant negative effect on the entire northern economy and her people, as according to them, the model will disproportionately benefits states where corporate organizations have their corporate head offices, rather than where the goods and services are been consumed.          

Meanwhile, this writer is of strong opinion that despite the apprehension been expressed by northern senators, as well as their elders, the benefits of the Tax Reform Bill completely overwhelm the costs.

This medium is therefore been deployed to passionately appeal to them as major stakeholders in the Nigerian project to allow the bill comes to manifestation.

It would be preposterous for the senators as boldly asserted by Ali Ndume to throw the well-conceived and laudable bill out with the flimsy excuse that it would be disadvantageous to the northern interest.

Let me however submit that taxation, even across the globe has always been a contentious issue. Only that leaders of government and lawmakers are always circumspect, thoughtful, determine, resilient and more importantly, driving by patriotism to work in the best interest of the country by subjecting such bill to intense parliamentary discussion, with a view to adopting the beneficial portions, as well as jettison the segment that are not in the nation interest.

This is what generality of Nigerians expect from the members of Upper and Lower Chambers as far as Tax Reform Bill is concerned and not for Senator Ali Ndume to seize the platform of national TV station to grandstand on issue that of utmost national interest. 

Happily, it’s gratifying that President Tinubu has vowed not to call back the Tax Reform Bill from the national assembly, promising to pursue it to the logical conclusion. This is consequent upon his conviction that the bill is good enough to create a new dimension in tax management and administration in the country.

It’s also encouraging that in the last couple of days, the Bill has been attracting support from several groups across the country, and even, including key caucuses both at the Upper and Lower Chambers of national assembly.

This is spirit Nigerians should develop towards making this laudable executive initiative to become a reality.   

Kola AMZAT (FCA, FCIB)

Lagos based Financial & Management Consultants,

09077509348.