Again, Senate Leader Clarifies Tax Reform Bills In Christmas Message

The Senate Majority Leader, Senator Opeyemi Bamidele (APC, Kwara), has clarified misconceptions surrounding the four Tax Reform Bills currently before the National Assembly. In a Christmas Day statement, Bamidele addressed concerns about the derivation model outlined in the Bills, dismissing claims as “utterly incorrect and unfounded.”

Bamidele explained that under the proposed reforms, states like Kano and Zamfara would see significant increases in their allocations, while states like Lagos and Rivers would experience reductions. Specifically:

• Kano State: Allocation increases from 0.89% to 6.17%.
• Zamfara State: Allocation rises from 0.05% to 1.21%.
• Lagos State: Allocation drops from 80.26% to 15.28%, an 81% reduction.
• Rivers State: Allocation decreases from 7.74% to 4.6%, a 41% reduction.

The Bills also propose tax exemptions for employees earning ₦1,000,000 annually (₦83,000 monthly), start-ups, shared services, and technologically-driven businesses, alongside zero VAT on essential goods and services.

The reforms have stirred debates among stakeholders, with northern governors describing the Bills as “anti-North.” Similarly, legislators across the country have raised concerns about the VAT sharing formula.

The National Economic Council (NEC), chaired by Vice President Kashim Shettima, had recommended withdrawing the Bills for further consultation, but President Bola Tinubu directed that concerns be addressed within the legislative process.

Governor Babagana Zulum of Borno State criticized the reforms, claiming they disproportionately favor Lagos State. However, Senator Bamidele insisted that the reforms aim to create a fairer, more business-friendly environment while addressing troubling economic indicators.

“Contrary to misconceptions, the Tax Reform Bills exempt all employees earning ₦1,000,000 annually, support start-ups and technological services, and propose zero VAT on essential goods and services,” Bamidele reiterated.

He encouraged Nigerians to focus on unity, compassion, and reflection during the Christmas season, urging everyone to contribute to national development rather than seeking opportunities abroad.

“As we celebrate, let us recommit to the development of our nation. This is not the time to search for greener pastures abroad but to join hands to rebuild and rebrand our homeland,” he stated.

President Tinubu, during a recent media chat, also emphasized that tax amendments require negotiation and consensus, assuring Nigerians that while the reforms may pose challenges, they are necessary for securing the country’s future.

Senator Bamidele concluded by wishing Nigerians a joyous festive season and renewed hope for the nation’s progress: “With all my heart, I wish you all happy celebrations in this season of joy.”