Senator Ndume Criticizes Timing of Tax Reform Bills
Calls for Governance Reforms Before Tax Reforms, Raises Concerns Over Spending and Perception of 'Rubber Stamp' Senate
In a pointed critique, Senator Ali Ndume, who represents Borno North Central Senatorial District, has expressed his opposition to the Tax Reform Bills that have been passed for a second reading in the Nigerian Senate. Speaking as a guest on Channels Television’s Politics Today programme, Ndume, the former Senate Chief Whip, argued that the timing of the bills is wrong and that the focus should be on governance reforms before implementing tax reforms.
The Senate had earlier passed four tax bills for a second reading on Thursday through voice votes. The bills include proposals to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman, all part of President Bola Tinubu’s comprehensive tax reform package.
However, Ndume outlined several concerns with the bills, citing issues such as the wrong timing, the question of derivation, Value Added Tax, and the lack of consensus or buy-in from Nigerians.
“Yes, reform. But even with reforms, you have to prioritise, time it correctly, and ensure the buy-in of Nigerians because this is a democracy. It is the government of the people, for the people, and by the people,” Ndume said.
The Senator further explained that the country spends over 50 per cent of its budget on recurrent expenditure and debt servicing, suggesting that the focus should be on reforming the government’s personnel and overhead expenditure before addressing tax reforms.
“First in Nigeria, what we need to do is reform the government. Our personnel and overhead expenditure for 2024 is about 50 to 60 per cent of the budget itself. We are here in November, and 20 per cent of the budget has not been implemented. But if you check the recurrent expenditure, it has already been exhausted,” Ndume stated.
Ndume also raised concerns that, despite the bills being an Executive Bill, the Senate treated it as if it were a Presidential bill, reinforcing the perception of a rubber-stamp Senate.
“Does it say it’s a Presidential Bill or is it supposed to be a Presidential Bill? When you say it’s an Executive Bill and you don’t have the buy-in of the Executive of the State, is it complete? That is where the problem lies. We’ve been doing this to the point that they now call us a rubber stamp,” Ndume said.
