The members of the House of Representatives, during Wednesday's plenary, expressed overwhelming support for the approval of the Fiscal Reform Law initiated by President Bola Tinubu.
Some legislators who spoke during the debate about the general principles of the bills applauded the upward review of the proportion of income that accumulate to subnational governments.
The majority of legislators also expressed a strong support for the Value Added Tax (VAT) proposed (VAT) sharing the 50% capital formula, 20% population and 30% association, as recommended by the Governor Forum of Nigeria (NGF).
Recognizing the efforts of the current administration to improve the impulse of income of the country, legislators requested rigid sanctions to err tax administrators, tax evaders and companies that present different financial accounts to the Corporate Affairs Commission (CAC) to evade taxes. They emphasized the need to introduce strict sanctions to serve as a deterrent for tax evasion.
In addition, they advocated the digitalization of audited accounts in the new bill to curb the rampant issuance of frivolous financial statements and audited accounts by companies.
To address public concerns about the decrease in income generation, a cross section of the legislators advised against the issuance of the Exemption Orders Executive.
In his speech, the president of the Water Resources Committee of the House of Representatives, Hon. Abubakar Fulata observed that, except the bill that deals with the tax administration, three other proposed bills lack interpretation clauses.
On the proposed elimination of certain institutions, the Hon. Fulata declared: “As president of the Chamber University Education Committee, I recognize the remarkable work Tetfund is doing in the education sector. Therefore, my position is that these agencies, Tetfund, Nitda and Naseni must be retained. “
Excmo Fulata also urged the Chamber to eliminate section 38 of the Tax Law, which argued that it leads to the double imposition. He emphasized the need for the Executive to formally present more than 40 acts before they are repealed to allow legislative scrutiny, stating: “It is repealed and eliminated by these bills, Mr. President.”
In addition, he said: “As a Muslim, we do not tolerate the inheritance tax. You cannot take from the richness of an orphan and give it to another person, Mr. President. Finally, I propose that the formula for sharing VAT should be based on 50% capital, 20% population and 30% association, Mr. President. “
Excmo Cyril Hart, speaking in section 85, which focuses on providing production credits for gas producers, argued: “Thirty percent of the price of fiscal gas will be given as credits. Mr. President, do you know that today, the non -oil sector contributes about 90% of our GDP, while the oil sector contributes only to 5%? However, irony is that this 5% of the oil sector constitutes 60% of our budgetary income.
“In addition, it contributes 90% of our currencies. Therefore, we must take measures to increase production, which is what section 85 seeks to address. We need gas production currencies, and we also need energy for energy. “
Leader of the Labor Party Caucus, Hon. George Ozodinobi described the proposed amendments of the tax bill as “a subtle restructuring of this great nation and, at the same time, a kind of handshake throughout the Niger to our people.”
Excmo nnolim nnaji stressed the need to guarantee the judicious use of the funds that are expected to be generated through fiscal reform legislation. He stressed that funds should be directed to essential public services, particularly electricity, since Nigeria still fights with a constant power supply. He also advocated greater financing for medical care.
“My concern is more about the use of these funds. We are on the way to generate significant income, but urge executive and state governments, especially Mr. President, to ensure that these funds are properly used to address our basic needs, ”he said.
Speaking about the company's taxes, he added: “The fiscal policy of each country influences the confidence of investors. We must ensure that our corporate tax structure attracts investors instead of discouraging them. We have spoken for a long time about attracting investors, so we must ensure that our fiscal policies promote investment in Nigeria. “
Supporting the call to security networks for companies that declare losses, legislators indicated that any company that informs losses for two consecutive years should be eliminated from the registration of the Corporate Affairs Commission.
Excmo Sada Soli argued that the proposed bill “would improve efficiency, guarantee compliance and harmonize tax collection at the three levels of government.” However, he pointed out inconsistencies and challenges that the bill could represent for the tax administration, stating that he does not address key issues such as derivation, artificial transactions and fiscal planning.
“Lord. President, there is a concern for equity in section 77, which proposes a 60% referral participation to the states. The committee must examine this issue to guarantee equity, especially for less competitive states,” he said.
President of the Chamber Defense Committee, Hon. Babajimi Benson said that the state governors had approached most of the concerns regarding the derivation and continuous existence of Tetfund, Nitda and Naseni.
“I don't think there are important doubts about this. The governors have spoken as true Democrats and patriots. When I examine the tax bill, I see that it is very focused on the state.
“Increases income participation for states, it reduces federal government participation from 15%to 10%and subsidies establish an additional 5%. It also allows states to collect stamps and improve their general tax collection. Above all, we must remember that Nigeria's tax laws date back to the 1930s, and we must modernize them, ”he added.
After the extensive debate, the bill was referred to the Finance Committee of the House of Representatives, chaired by the Hon. Abiodun James Faleke, for an additional legislative action.