Why I’m Against Tax Reform Bills – Ndume

informantonline.com.ng

November 28, 2024

Ali Ndume, the Senator representing Borno North Central Senatorial District, has expressed his opposition to the Tax Reform Bills, which were recently passed for a second reading in the Senate.

In an appearance on Channels Television’s Politics Today programme on Thursday, the former Senate Chief Whip criticized the timing of the bills, emphasizing that the government should prioritize governance reforms before pursuing tax reforms.

On Thursday, the Senate passed the four tax bills for a second reading via voice votes.

Read Also: Senate Passes Tax Reform Bills For Second Reading

These bills include proposals to create the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman, all part of President Bola Tinubu’s broader tax reform initiative.

However, Ndume voiced several concerns regarding the bills, highlighting issues such as their timing, the derivation formula, Value Added Tax, and the lack of consensus or buy-in from the Nigerian public.

He also pointed out that more than 50 percent of the nation’s budget is spent on recurrent expenditure and debt servicing.

“Yes, reform. But even with reforms, you have to prioritise, time it correctly, and ensure the buy-in of Nigerians because this is a democracy. It is the government of the people, for the people, and by the people.

“First in Nigeria, what we need to do is reform the government. Our personnel and overhead expenditure for 2024 is about 50 to 60 per cent of the budget itself. We are here in November, and 20 per cent of the budget has not been implemented. But if you check the recurrent expenditure, it has already been exhausted.

“So, that means over 15 to 20 trillion naira is going into personnel, debt servicing, and recurrent expenditure. We should reform the government, not only the Executive – we need to reform the government holistically,” he said.

The Senator also expressed concern that, although the bill was an Executive Bill, the Senate handled it as if it were a Presidential bill, reinforcing the perception of a rubber-stamp legislature.

“Does it say it’s a Presidential Bill or is it supposed to be a Presidential Bill? When you say it’s an Executive Bill and you don’t have the buy-in of the Executive of the State, is it complete? That is where the problem lies. We’ve been doing this to the point that they now call us a rubber stamp,” Ndume said.