Tax Reforms Bills: “We’re still consulting” – Senate panel

Chairman of the Senate Committee on Finance, Sani Musa, says his committee is still consulting with relevant individuals and institutions on the tax reform bills.

He, however, said tax reform is not a tool of economic development but increased production.

Mr Musa stated this on Tuesday while briefing journalists at the National Assembly shortly after the plenary.

The Senate had last week passed the four tax bills for second reading and referred them to the finance committee after debating their general principles.

Opposition

During the debate, some northern senators notably Ali Ndume, the Borno South senator, had said the bills favoured some states more than others.

Earlier in October, the Northern Governors Forum had criticised the bills particularly the one on VAT, saying they were against the interest of the region.

In an interview with the BBC Hausa Service on Friday, Borno State Governor, Babangana Zulum, noted that except Lagos State, the bills will not benefit other states.

Mr Zulum also said they could have devastating consequences for the northern region.

Bills not against any region

But Mr Musa, the senator for Niger East, said the bills are not targeted to favour some parts of the country against the other parts, contrary to what is being circulated by some critics.

“So for me, the issue of tax reform is because we are doing wider consultations. We are doing wider consultations. It’s not about this region or that region,” he said when asked his views on the bills.

“For me, it is about Nigeria, and what is good for me should also be good for my brothers, and what is good for my brothers should also be good for me,” he said.

Mr Musa urged members of the public to allow members of the National Assembly carry out their duties on the issue.

“So the answer I will give you about this is that allow the committee, allow the National Assembly to do the needful, and at the right side,” the APC senator stated.

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The committee chairman did not disclose the date for the public hearing on the bills.

Tax not a tool of economic growth

On Nigeria’s development, Mr Sani said the country’s leaders need to find a way to increase production and not reforming the tax system.

“Every country that wants its economy to change will from time to time have to look at all those parameters that need to move the country. And I’have said it times without numbers on the floor, tax is not a tool of economic growth.

“What you will see that will change the face of the economy of any nation is production. And it is out of that production you’ll be able to make the taxes. You’ll be able to realise the taxes,” he said.