Senate Leader Opeyemi Bamidele has highlighted the critical role of tax reforms as part of a broader legislative agenda aimed at Nigeria’s economic recovery and national development.
In his Christmas message on Wednesday, Senator Bamidele called for a united effort to address the nation’s challenges, emphasizing the importance of innovative legislative solutions.
Drawing inspiration from the teachings of Christ, he urged Nigerians to reflect and show compassion during the festive season, encouraging them to embrace hope and actively contribute to the country’s progress.
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The senator reiterated the 10th National Assembly’s commitment to passing laws that foster a conducive business environment, attract investment, and reduce the economic burden on citizens.
Central to his message was a strong endorsement of the Tax Reform Bills, 2024, which he described as a comprehensive set of four initiatives designed to address Nigeria’s challenging economic indicators and set the nation on a path toward sustainable growth.
Senator Bamidele said, “Employees earning below N1,000,000 annually (N83,000 monthly) would be exempt from taxes. Start-ups, shared services, and technologically driven businesses would enjoy tax exemptions; and essential services and consumables would be excluded from Value Added Tax.”
The lawmaker went on to clarify that the proposed reforms include a new derivation formula, which aims to increase the VAT allocation to states and ensure a more equitable distribution of resources.
Senator Bamidele further illustrated, using data, that the revised model would result in significant increases in the shares for states such as Kano and Zamfara, while high-revenue states like Lagos and Rivers would see reductions, in order to promote fairness.
He said, “We have taken due note of public concerns about these initiatives. We are also looking deeply into the areas of public concern.
“Our duty, as democrats, is not just to listen to our constituents, but also give effect to policy initiatives that will positively impact their lives.”
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The Senate Leader added, “For the record, the Tax Reform Bills, when finally enacted, utterly exempt all employees earning N1,000, 000 annually or N83,000 monthly; exempt start-ups, shared services and technologically driven services from taxation and recommend zero VAT on essential services and consumptions.
“Even though it reviews the derivation formula to 60 per cent, 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 per cent to Kano compared to 0.89 per cent currently due to it. It recommends 1.21 per cent for Zamfara compared to 0.05 per cent. Currently, Lagos gets 80.26 per cent, but the new model only recommends 15.28 per cent, representing an 81 per cent decrease.
“Under the new model, also, Rivers’ share will decline from 7.74 per cent to 4.6 per cent, accounting for 41 per cent. With these figures, the narrative around the new derivation model is utterly incorrect and unfounded.
“These reforms are not only about generating revenue but are guided by the principles of equity, fairness, and justice,” the Senate Leader said.
He assured constituents that their concerns had been acknowledged and that the National Assembly would ensure the bills represent the interests of all Nigerians.
He said, “Amid the debates about the Tax Reform Bills, as Christ our Lord has taught us and as the parliament of the people, we shall never pursue any agenda outside our oath of allegiance or undertake policy initiatives adversarial to or conflicting the interest and welfare of all our constituents and indeed our Fatherland.
“With all my heart, I wish you all happy celebrations in this season of deep reflection. Merry Christmas and Happy New Year in advance.”
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