Tax Reform Bills: ‘The Bills Were Transmitted Despite Rejection’ – Lawmaker

A member of the House of Representatives from Borno State, Ahmed Jaha, has raised concerns over procedural breaches in the passage of the tax reform bills, stating that more clarity was needed on certain provisions.

Speaking to journalists after the bill scaled second reading in the House of Representatives, Jaha, who represents Chibok/Damboa/Gwoza Federal Constituency, questioned the manner in which the bills were transmitted to the National Assembly.

“First of all, the bills were transmitted despite rejection by the members of the National Economic Council, rejection by elders across the country, and rejection by the Governors’ Forum, particularly the Northern Governors’ Forum,” he said.

Naija News reports that Jaha also noted that some provisions of the bill required revisitation for fairness and good governance.

He admitted that the bill sparked significant controversy in the House of Representatives, as members were divided over its contents.

Support For Certain Provisions

Despite his reservations, Jaha expressed agreement with some aspects of the tax reforms. He proposed maintaining the status quo, but noted that he would support ceding 20 per cent of VAT revenue based on generation derivation rather than headquarters location.

“My position as a person is to maintain the status quo. The highest I can concede as far as my opinion and that of my constituents is to cede 20 per cent based on derivation or based on generation derivation. Wherever these companies have their headquarters, 20 per cent can be given to them,” he stated.

He also supported the retention of key agencies, stating, “There is a consensus among all the honourable members that NITDA, NASENI, and TETFUND are not going to be terminated, bearing in mind their importance to national development.”

Opposition To CEO Dual Role In Nigerian Revenue Service

Jaha criticized a provision in the bill that allows the Chief Executive Officer of the Nigerian Revenue Service to simultaneously serve as Chairman of the Board.

“You cannot be a judge in your own case. As the saying goes, power corrupts, and absolute power corrupts absolutely,” he argued.

He further pointed out that Section 141 (1) of the bill appears to elevate the tax law above the Constitution of Nigeria, which he believes is legally problematic.

Jaha also strongly opposed the introduction of inheritance tax, stating that it is against the provisions of Islam, Christianity, and traditional religions.

“In Islam, you are not even allowed to take even a packet of pure water out of inheritance and give it to somebody that is not the heir or entitled to that particular inheritance,” he said.

He maintained that imposing a tax on a deceased person’s estate was contrary to Islamic principles and also disrespected the beliefs of other faiths.

Next Steps For The Tax Reform Bill

With the second reading concluded, the tax reform bill will now proceed to committee review, where lawmakers are expected to deliberate on the raised concerns and consider possible amendments before final passage.