Despite widespread opposition from governors, traditional rulers, and civil society groups, Senator Seriake Dickson has boldly declared that the National Assembly will pass President Bola Tinubu’s controversial tax reform bills, insisting that “heaven won’t fall.”
In a statement made on Monday, December 3, 2024, Dickson, who is the Chairman of the Senate Committee on Ecology and Climate Change, reaffirmed the legislature’s commitment to the bills, which President Tinubu presented in October 2024.
The Controversial Tax Reform Bills
President Tinubu’s tax reform proposals aim to strengthen Nigeria’s fiscal institutions and align with the government’s long-term development objectives. The bills were transmitted to the National Assembly on October 3, 2024, and have sparked heated debates across the country.
While the reforms are expected to reshape the country’s tax system and improve revenue collection, they have faced fierce opposition from various quarters. Governors have raised concerns about the impact on their states’ finances, while traditional rulers and civil society organizations have voiced their displeasure over the potential negative consequences.
Despite the opposition, Senator Dickson is confident that the reform bills will pass through the legislative process.
A Strong Stand for Reform
In his remarks, Senator Dickson drew parallels between the current tax reform bills and the passing of the Petroleum Industry Act (PIA) during the administration of former President Goodluck Jonathan.
“The PIA was passed,” Dickson reminded the public. “We wanted 10% as proposed by former President Yar’adua. They (federal lawmakers) reduced it to 3%. Heaven did not fall. This tax reform bill will pass, and heaven will not fall.”
The Senator’s comments are a clear signal that he believes the proposed tax reforms will survive the legislative process, despite the vocal opposition from several stakeholders.
Second Reading Passed, Public Hearing Next
Last week, the Senate passed the tax reform bills for a second reading, while the House of Representatives is yet to begin deliberation on the bills.
Dickson emphasized the importance of a public hearing, urging critics of the reform to attend and present evidence supporting their positions. He clarified that the tax reform bills, like any other proposed laws, must undergo the standard legislative process, including public hearings.
“The Senate has passed the bills for second reading. Public hearing will take place, and people should get ready to present their positions,” he said. “The tax bill is a proposed law like every other and it has to go through the normal legislative process.”
Addressing Tax Disparities and Inefficiencies
A key issue that Senator Dickson highlighted during his remarks was the existing tax disparities between states, particularly regarding the sharing of tax revenue. He pointed out that taxes collected in Bayelsa State are currently paid to Lagos State, an arrangement he believes is unfair.
“Right now, taxes from Bayelsa State are paid to Lagos State and I don’t want that to continue,” Dickson stated. “When there is consumption of any goods or services from any state, it should be calculated and paid to that state.”
Dickson’s comments reflect his support for the tax reform bills, as they present an opportunity to address and correct these longstanding tax anomalies.
Support for Reform: A National Interest Approach
The senator further elaborated on his support for the reform, stressing the importance of addressing the existing tax system’s shortcomings.
“Now there is an opportunity to review the tax laws and correct the anomalies, and that is why I’m in support,” Dickson said. “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.”
Dickson’s stance indicates a firm belief that the tax reform will ultimately benefit the country, even if it may not be immediately popular with all states. His priority is national interest, rather than state-specific concerns.
The Road Ahead for the Tax Bills
As the bills move through the legislative process, it remains to be seen how much resistance the government will face from state governments, traditional leaders, and civil society organizations. However, with strong backing from figures like Senator Dickson, it is clear that the National Assembly is determined to push the reform through.
The bills, once passed, are expected to overhaul the country’s tax system and bring significant changes to Nigeria’s fiscal landscape. While the reforms are expected to benefit the nation as a whole, the exact impact on individual states remains uncertain.
