The Chairman of the Senate Committee on Ecology and Climate Change, Seriake Dickson (PDP, Bayelsa West), has assured that the National Assembly will pass the proposed tax reform bills despite opposition from various groups.
Speaking in an interview with newsmen in Abuja on Monday, Dickson emphasized that the tax bills would eventually pass in the same way the Petroleum Industry Bill was successfully enacted.
He further stated that there would be no catastrophic consequences following the passage of the bills, noting that “heavens will not fall.”
The four tax reform bills were transmitted to the National Assembly by President Bola Tinubu on October 3, 2024, according to Daily Trust.
The bills were read by Senate President Godswill Akpabio and Speaker of the House of Representatives, Hon. Tajuddeen Abbas, during separate plenaries.
According to President Tinubu, the reforms are intended to strengthen Nigeria’s fiscal institutions and align with his administration’s broader development goals for the country.
However, the proposed tax reforms have faced criticism from various quarters, including some state governors, traditional rulers, civil society organizations, and federal lawmakers. Despite this, the Senate passed the bills for a second reading last week, while the House of Representatives has yet to take action on them.
Dickson responded to concerns about the potential chaos surrounding public hearings on the bills, reassuring that those opposed to the proposals should present their facts and concerns at the hearings. He stressed that the tax reform bills would undergo the normal legislative process, including public consultations.
Reflecting on previous legislative challenges, Dickson pointed out that the passage of the Petroleum Industry Act demonstrated that significant reforms could be enacted without major fallout. He recalled how the federal lawmakers reduced the proposed 10% royalty on oil production to 3% during the passage of the PIA, yet no major disruptions followed.
On the issue of tax revenue distribution, Dickson explained that taxes from Bayelsa State are currently paid to Lagos State, a situation he wants to change. He emphasized that taxes should be calculated and paid to the state where goods or services are consumed. Dickson expressed his support for the new tax reforms, stating that it was an opportunity to correct existing anomalies in the tax system.
Acknowledging concerns from some states about potential losses under the new tax-sharing formula, Dickson urged them to present their concerns backed by data and statistics. He clarified that his support for the reforms is based on what is right and in the national interest, rather than on sentiments.
Dickson, former Governor of Bayelsa State said, “The PIA was passed. We wanted 10% which was what Yar’adua proposed. They (federal lawmakers) reduced it to 3%. Heaven did not fall. This tax reform bills will pass and heavens will not fall.
“The Senate has passed the bills for second reading. Public hearing will take place and people should get ready to present their positions. The tax bill is a proposed law like every other and it has to go through the normal legislative process.
“Right now, taxes from Bayelsa State are paid to Lagos State and I don’t want that to continue. When there is consumption of any goods or services from any state it should be calculated and paid to that state.
“Now there is an opportunity to review the tax laws, to correct the anomalies and that is why I’m in support. I know there are states that are feeling that when they apply the new sharing formula, they will earn less. It’s for them to raise those issues and bring the statistics. I don’t go by sentiments. I go by what is right and in the national interest.”
