The House of Representatives Committee on finance has reaffirmed its commitment to enacting tax laws that reflect the interests of Nigerians while promoting economic growth and fiscal sustainability.
The committee made this known after a three-day public hearing on the tax reform bills.
The hearing provided a platform for key stakeholders to engage in discussions and contribute valuable insights on the proposed legislation.
This commitment was made by the chairman of the House Committee on Finance, Mr. James Faleke, after a three-day public hearing on the executive-sponsored tax reform bills.
Mr Faleke stated that the committee will review all submissions in the coming days and work towards passing new tax laws that reflect the aspirations of Nigerians.
Speaking to journalists after the close of the last session of the public hearing, Chairman of the Committee, Mr. James Faleke said that, Public hearing as part of the legislative process provides a platform where stakeholders give their inputs which will be incorporated to come up with a balanced legislation that incorporates important shades of opinions.
He commended the stakeholders who made observations and suggestions as a group of individuals, agencies of government and private entities, as well as government agencies.
“We’ve done that now, the public has responded to us, we will now look at every detail to propose a bill, a bill that will now be passed into law, considered by the House, if the House agrees with all our suggestions.
“When we finish and we lay a report and it is discussed on the floor or debated and passed, we will compare with what the Senate passed, any areas of differences, we will harmonize,” Mr. Faleke said,
The Chairman of the House Committee on Information, Mr. Ademorin Kuye commended the media coverage of the public hearing.
He said that the media helped in clearing public doubts about the bills.
The three-day public hearing was attended by financial experts, players in the financial sector and other stakeholders.
Former President, Nigerian Bar Association, Yakubu Maikyau, in his presentation urged the National Assembly to ensure that the proposed Tax Reform Bills will serve the interests of Nigerians and make their lives better.
“I have put down in my mind that these proposed bills, these bills that have been submitted to the National Assembly by the President, seek to advance the course of providing prosperity to the people of this country. Provide empowerment to the people of this country.
“Nigerians expect that arising from this bill will be a regime that will recognize their sacrifices and also they will have an opportunity to see that the sacrifices that they have made in being a part of this process where they are asked to recognize their sacrifices and also they are asked to make contributions in to the development of this economy.
“They will not only be involved in their activities. That is the expectation of Nigerians. And I know that Nigerians appreciate the fact that they are in this place because this is the only place where this kind of business can be undertaken.
This is my interest because this is a process that is correctable on this continent. And so we have a responsibility beyond the risks that we take from some of you once in a while in the cycle that comes around. We have a responsibility to provide direction to the people of this country and to also advance the course of this country,” Maikyau said.
The Comptroller General (CG), Nigeria Customs Service (NCS), Mr. Adewale Adeniyi stated before the Committee that, companies operating in Nigeria’s Free Trade Zones are violating the law governing their operations.
He alleged that the companies are going into Customs areas where extant tax laws are operational to conduct their businesses.
Adeniyi was called to make clarifications on claims by NACCIMA on Thursday that tax and levies allegedly being imposed on companies operating in Free Trade Zones by the Nigerian Customs.
“The sticky issue over the years has been the compliance of free trade zones operators with the provisions of the law. Whereas, the law allows them to import every manufacturing input they need, 100%. Sometimes, including things that are prohibited into the customs territory.
“In fact, a lot of those incentives were given to them for them to manufacture. But the initial incentives were for them to export everything that they import inside this free zone. But from time to time, I think they started to develop loan proofs for the local markets. And they felt that they couldn’t trade anything from the local markets.
“So I think there was a need to produce all the services we can provide to the local markets. From the local market to the federal market and the regulations of change allowing them to export 25% of volume and factory into the local market, into the local customs territory and subject to extant law affecting goods that are imported into Nigeria. I cannot stand here, Mr. Chairman, and tell you that this has been observed absolutely in full compliance.
“There have been reported violations of these provisions. We have seen some of them that were expected to export 100% of the things that they produce in the free zone into Nigeria. We have even seen cases of some free zone enterprises that want to export to Nigeria. We have seen the import of locally made armored cars and luxury goods.
“Some of them are perhaps thinking that this would be for the operations of the free zones. Because we cannot justify this under the labelling act, we have resisted such attempts in the past,“ he said.
In his remark, the Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele commended the House Committee on Finance for conducting the public hearing to allow Nigerians to contribute in having a law that will transform the country’s tax laws and improve economic activities.
Also speaking, the Chairman, Federal Inland Revenue Service (FIRS), Zach Adedeji said, the engagement of Nigerians on the Tax Reform Bill through the Public hearing has given Nigerians the opportunity to understand the Bill.
The General Manager Tax of Total Nigeria, Mr Oladimeji Olowole, also made a presentation at the hearing.
He presented the company’s position on the tax bills.
In their submissions, the Congress of University Academics (CONUA) presented by Prof. Isa Abdulraheem opposed the proposed increase in Value Added Tax (VAT) as stated in Chapter 6, Part I, Section 146 of the bill. It recommended maintaining the current VAT rate of 7.5% and broadening the tax base to include more taxable items.
In a presentation, as the Nigerian Investment Promotion Council (NIPC) which was presented by Mrs Uchenna Okonkwo stated that, contrary to the provisions of Section 167 (3), the “NIPC as the processing Agency of the incentives and in the exercise of its statutory mandate of recommending priority sectors/products for incentive should be empowered under this Act to make recommendations to the President for amendments of the list”.
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