The Nigerian Customs Service, NCS, yesterday raised eyebrow against some aspects of the Tax Reform Bills currently before the National Assembly, saying they conflict with provisions of Customs Act 2023.
This came as the Senate promised to produce a legislation from the bills that would assist President Bola Tinubu’s administration realise its target of $1 trillion economy for Nigeria.
In his presentation on the second day of the public hearing organised by the National Assembly on the bills yesterday, the Comptroller-General of the Nigeria Customs Service, NCS, Mr. Adewale Adeniyi, identified what it called conflicts in the bills with some provisions of the Nigerian Customs Act 2023,.
He said Clauses 78, 79, 141(1) and 143 of the proposed Nigeria Tax Bill 2024 were in conflict with the provisions of the NCS Act 2023.
The Customs boss, who urged the Senate Committee on Finance to address the anomaly, ahead of the third and final reading of the bills, said: “We have started to get results of this modernisation of our tax laws.
‘’In terms of revenue, our revenue has increased by 97 per cent and has been on an upward trajectory. We have seen results in just about two years, less than two years, after the enactment of the Act.”
“We, therefore, feel that two years into the implementation of an Act is a little bit too small for us to contend and repeal as this Act.’’
Also at the public hearing yesterday, the Senate pledged to produce a legislation from the tax reform bills that would achieve President Bola Tinubu’s target of realizing a $1 trillion economy for Nigeria,
Answering questions from journalists, the Chairman, Senate Committee on Finance, Senator Sani Musa, said PresidentTinubu had asked the National Assembly to do this, adding that the legislature was also committed to producing a tax law that would be accepted across the country.
He said with the just concluded public hearing on the tax reform bills, the committee would consider all stakeholders’ inputs as well as viable opinions of all, including the opinion of governors in the passage of current Tax Reform Bills.
Speaking further, Senator Musa, who emphasised the need for Nigerians to be patient for a tax regime that would be beneficial to all and sundry, explained that the red chamber would evolve a legislation that was workable, in line with international best practices.
Senator Musa said: “We are going to give this country a piece of legislation that is workable. We are going to consider every submission and every memoranda that has been given.”
“We are going to review everything. After today (yesterday), we are going to go in for a three-day retreat and during the retreat, we will consult with experts.”
“We are also consulting with the office of the Attorney-General of the Federation, so we see how we can present a law or an Act that is workable, that will not conflict with the Constitution of the Federal Republic.”
“We are taking the advice of everyone that has made presentation. We are going to consider everything on its own merits.”
“We are not particularly looking at which organisation or which entity made presentations but what is going to be acceptable to all Nigerians.”
“What we are trying to do is to present a law that is workable and when you look at advanced economies, Mr President has said he wants to see Nigeria having a one trillion dollar economy. And for us to do it, we must do it in a way that it’s not only during the time of Mr. President.”
“Mr. President is only going to stay for likely eight years. And after eight years, there will be another government. So we want a law that will endure under another government. So I think it’s not about who presents, it is about what Nigerians will see as a true reflection of what it should be.”
On his part, the Executive Chairman of Federal Inland Revenue Service, FIRS, Zacch Adedeji, who was excited by overwhelming supports given the tax reform bills by critical stakeholders during the 2-day public hearing, thanked Nigerians for embracing the proposed reforms .
In his remarks, the FIRS boss said: “ My word in this remark, is a word of appreciation, first to the courageous and visionary President Bola Tinubu for conceptualising the bills, that when passed into law, will transform Nigeria’s economic landscape .
“ I also thank the President of the Senate, Senator Godswill Akpabio, the Senate leadership , the entire Senate and in particular, the Finance Committee, chaired by Senator Sani Musa for well organised public hearing.”
“All the stakeholders who made submissions in support of the proposed laws are well appreciated.’’
Meanwhile, Senator Abdul Ningi, described the bills as what Nigeria needed now for development.
He dismissed insinuations that the north was against the legislation, saying “I’m delighted as a member of the committee that the tax reform has assumed a Nigerian dimension. It has not actually taken the north-south dichotomy.”
On concerns that the bills would negatively impact the northern economy, Ningi clarified that initial opposition came from governors.
“The 36 governors collectively expressed serious reservations. The original bill primarily benefited Lagos, Ondo, parts of Kano, and Rivers. Other states remained silent, but we could not, because our responsibility is to protect the interests of the people we represent,’’ he said.
He commended governors, such as Babagana Zulum and Bala Mohammed, for taking a firm stance, which led to federal government’s negotiations and a more unified position among state leaders.
Ningi added: “This dialogue created the space for a proper public hearing, where Nigerians could openly express their views, instead of murmuring in private.”
