Senate Suspends Tinubu’s Tax Reform Bills, Constitutes Special Committee

President Bola Tinubu’s tax reform bills have encountered a major setback as the Senate has suspended action on the proposed legislations.

The decision was announced by the Deputy Senate President, Jibrin Barau, who presided over the plenary session on Wednesday.

Barau stated that the red chamber directed the Committee on Finance to halt public hearings on the bills until public concerns are addressed.

To resolve the issues surrounding the reforms, the Senate constituted a special committee tasked with engaging the executive branch and collaborating with the federal government.

“In this regard, we have decided to set aside politics, ethnicity, and regionalism to work together on resolving the issues surrounding the tax reform bills,” Barau said.

He further disclosed plans to establish a forum with the executive arm to identify and address contentious areas, emphasizing the need to prioritize national unity and progress.

“Before the introduction of these bills, we faced numerous challenges, including insecurity and economic issues.

The President has been working to address these problems, and we are committed to supporting these efforts while tackling global economic challenges,” he added.

Barau also revealed a mutual agreement between the Executive and the Senate to engage the Judiciary to resolve legal concerns.

The tax reform bills, including the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, Nigeria Revenue Service (Establishment) Bill, 2024, and Nigeria Tax Bill, 2024, aim to overhaul the nation’s tax laws.

However, the bills have sparked widespread controversy since their introduction to the National Assembly.

Northern governors and the National Economic Council opposed the bills, arguing that they would disadvantage the region.

However, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, countered this assertion, stating that the bills would be more favorable to the North.

The Senate’s decision to suspend the bills follows their passage for second reading last week. Meanwhile, the House of Representatives had a rowdy session on Tuesday over divergent views on the same bills.