There was a momentary outrage cum drama of sort at the Senate Wednesday over the presentation of details on Tax Reform Bills by the Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele.
But, notwithstanding the brief drama which preceded Oyedele’s appearance, his presentation on the tax reforms as contained in four separate bills already before the Senate for consideration, dazzled the lawmakers.
The fireworks started when Senate Leader Opeyemi Bamidele moved a motion for the suspension of Senate rules to allow Chairman Federal Inland Revenue Service (FIRS) Zacch Adedeji, Director General Budget Office Tanimu Yakubu, and Oyedele into the chamber.
Bamidele had said the tax experts and consultants, as well as Yakubu and Adedeji, needed to attend the plenary to explain to the lawmakers what the Bills were all about.
…Ningi’s salvo
First to kick against the move was Senator Abdul Ningi (PDP Bauchi Central) who rose through Order 12 of the Senate Standing rules which according to him, excluded some categories of government officials being invited, to enter the chamber for any form of presentation.
The Bauchi-born lawmaker said such a scenario was more appropriate at the committee level, and should therefore, be forwarded to the finance committee and, possibly that of appropriations, to interface with the team.
In ruling Ningi out of order, Deputy Senate President Jibrin Barau (APC Kano North), who presided over the session, said the invited economic experts made presentations in the hallowed chamber of the House of Representatives few days ago through suspension of relevant rules.
To further knock off any point of order on prevention of the economic experts from entering the red chamber, the Senate leader cited order 1(b) which gives the Senate the power through resolution at any sitting, to regulate itself.
And in responding, Bamidele said: “Mr President, I listened to the Point of Order raised by the most distinguished, highly respected, well-revered former leader of the House and of the Senate, distinguished Senator Abdul Ningi.
“Mr. President, let me clarify. My motion was for suspension, not invocation of Order 12. Order 12 talks about those who are privileged to speak in this hallowed chamber, as well as the exceptions that can be
“But when a motion is moved for suspension, it means that the rule does not apply again. In addition, sir, for our working relationship, let me also amend my motion by saying that in addition to my motion for the suspension of Order 12 on floor privileges, I’m also coming under Order 1B, which says in all cases where there’s no specific provision or rule, the Senate shall regulate its procedure.
“So, Mr President, let it be said that my motion is based on both the invocation of Order 1B of our rules, as well as the suspension of Order 12 of our rules. Nigerians need to know, and we also want to know. Let’s hear these people.”
Upon his explanation, the Deputy Senate President then put the question to a voice vote, after which he hit the gavel in favour of the ayes.
…Ndume rises
Still not done, another member, Senator Ali Ndume, was on his feet to tell the lawmakers that such an important matter ought to have been highlighted on the Order Paper.
He noted that since it wasn’t a Supplementary Order Paper, it should be printed or stepped down for another legislative day.
Ndume, who was visibly infuriated by the arrangement, cited Order 38 to insist that business of the day in the Senate should be based on items listed on the order paper.
He said: “This is a very important matter. We should not in any way try to use the position of the Senate because the Order Paper is clear. I have no problem having them to come to explain whatsoever but we must follow known procedures.
“That is if today that has to be taken, then there must be a supplementary Order Paper that will reflect this. It is not a matter that you will just come and tell us after we are doing business of the day.
“Mr President, you can have your way, but I will have my say. You can use your gavel and I will use my voice. The Tax Reform Bill is very sensitive; our people have been dominated by this matter.
“When you say, it is a matter of urgent national importance, yes, but even those matters normally refer to another legislative day if they are so inconvenient.
“Please I beg you in the name of God. This matter is very important to not only us, but Nigerians that we represent and we swear by the Bible and Holy Quran that we will represent the interest of the people. Nigerians have spoken, the Governors, the National Economic Council.”
…Again, Barau responds
In a further response, Barau ruled him out of order and stressed the need to avoid rhetoric and face facts, following which he ruled Ndume out of order.
According to the Deputy Senate President, the law making body is usually operating within its rules, as the “Chamber has no time for rhetoric.”
“You have made your point. Now we are not here for rhetoric. We are here for facts,” Barau said.
And at this juncture, there was uproar with the presiding officer trying to restore order.
The Deputy Senate President explained that the Senate suspended its rule to allow for transparency so that Nigerians could watch the live proceedings and listen to the debate on the Tax Reform Bills.
…Ndume again
And just as the team was stepping into the chamber, the Borno-born lawmaker raised yet another Point of Order on the Deputy Senate President’s reference to his comment as rhetoric, describing it as an insult.
On this, Ndume said: “I, therefore, demand an apology from you.”
But Barau responded by jokingly saying rhetoric wasn’t in any way an insult, and that it wasn’t even a direct response to his comment, but rather a general statement.
Like the previous moves, Ndume was ruled out of order.
…Calm returns
After the fireworks, calm returned as the economic experts took turns to make their presentations on the tax reform bills, which considerably changed the mind-set of many of the senators on the subject matter.
Specifically in his presentation, Oyedele, who chairs the presidential committee that came up with the reform bills, said the reform was not planned to tax poverty but prosperity and most importantly, to correct lopsided tax gain derivation.
He said: “The committee proposes four major bills aimed at overhauling the tax system. Nigerian Tax Bill seeks to harmonise major taxes into one legislation, simplifies tax processes, and proposes exemptions for low-income earners.
“The tax Administration Bill aims at establishing standards for tax administration, promotes the use of technology, and aims to streamline tax collection.
“Nigerian Revenue Service Establishment Bill proposes the establishment of a new revenue service to improve tax collection and coordination among agencies while the Joint Revenue Board Establishment Bill, aims to enhance collaboration among tax authorities and create a Tax Ombudsman to protect small businesses.
“Key Proposals of the tax reform bills are; elimination of minimum tax for loss-making companies, Introduction of a 15% effective tax rate on profits for large companies, removal of VAT on essential goods and services, increased tax thresholds for personal income tax to exempt low-income earners.”
On the contentious revenue sharing formula from VAT, Oyedele said: “The current VAT sharing formula is deemed unfair, favouring states with major corporate headquarters.
“The proposal includes a more equitable distribution based on consumption within states as against current sharing formula which lopsidedly favours Lagos state, being host to headquarters of Corporate Organisations.”
He added that the proposed tax reform bills would exempt any Nigerian not earning above N1million per month from personal income tax.
At the end of the presentation, indications emerged that the Senate may pass the bill Thursday (today) as subtly indicated by Deputy Senate President Barau, who presided at the session.