An indication has emerged that President Bola Ahmed Tinubu would give some concessions to the North on the controversial Tax Reforms Bills currently undergoing committee sessions in the Senate and indefinitely on hold in the House of Representatives.
It would be recalled that the Senate became rowdy last week when the Executive Bills went through first and Second Readings in the Red Chambers during a plenary presided over by the Deputy President of the Senate, Senator Barau Jibrin.
Senators, mainly from the North, had vehemently opposed the Bill, which sought to raise the derivation from 10 to 60 per cent as well as the Value Added Tax.
Unlike in the Senate where the Bill scaled through First and Second Readings during the same plenary, the House of Representatives put the Bill on hold, asking that more consultations be done, to carry critical stakeholders along.
They accused the President of working against the interest of the North as he wanted to bring in Resource Control through the back door, whereby Lagos and Rivers States would become super rich.
Unlike in the Senate, the House of Representatives put debate on the Bills on hold indefinitely, asking that the President should consult more before the members debated the bills.
However, those who should know confided in the Sunday Telegraph that the President decided to take a second look at the Bills with the view to tinkering with it by giving some concessions.
Sources, who spoke with the Sunday Telegraph on condition of anonymity because they are not authorized to do so, said that very soon, the concession given by the president would be made public.
One of the Sources said: “We understand that the extant matter is that the president and his key advisers are not averse to minor amendments to the tax reforms bill. But the spirit and the letter of the tax reform would be preserved for the benefits of the whole country.
“However, because of some overtures from some meaningful and well-meaning Nigerians, the President is not averse to tinkering with some of the provisions of the tax reforms bill. For instance, the 60 per cent derivation may be slightly reduced to pander to some of the misgivings of the Northern establishments. We are expecting a reduction of about between 10 and 15 per cent, but not more than 20 per cent. The others would be 30 – 30 whatever.”
On why the President gave in, the Source said that the spirit and the letter of the reform would be preserved because that was the way to go.
“In any case, it would also ginger other states to look inward and see what they can do to generate their own internal revenue. What they are saying invariably is that since they are collecting what they ought to collect and ensure that they keep going. It is not a question of reversing but just a question of some of the misgivings and misconceptions about the bill and how the bill would be quickly responded to and addressed.
“As it is, nothing would stop the bill from going ahead and seeing it to its logical conclusion. That is one of the key reform agenda of Mr. President,” another Source said.
“The inner thinking is just to get it passed. Underground too, the President and his people are also reaching out to Senators and House of Representative members to reach a consensus and to ensure that they are also on the same page with the president and his team.”
For the presidency, once bitten twice shy. The Source said that what happened during the National Economic Council (NEC) meeting in which the Northern Governors openly opposed the proposal would not happen again.
“They have said that the issue which happened at the National Economic Council (NEC)meeting, where the Northern Governors opposed Mr. President and his bill openly, would never repeat itself again,” the President’s Team, were quoted to have said.
Speaking on the reason the President stepped it down and opted for more consultations, the Source said: “The main reason they stepped it down for now and that the president and his kitchen cabinet took that decision in deference to some interventions by some elder statesmen and they also faulted the president for not carrying some persons along.
“There would be some toning down, give and take. But the president insisted that even if there are changes here and there, they would still go ahead and it should be passed. But there would be some fundamental changes in the days ahead.”
The Source continued: “If the president were to be a second term president, he would not back down but because the president may also be gauging the political mood, so that he does not want to do completely what may cause him some major setback. That is what informed the situation. It is not about being withdrawn. The President is one of the major reasons for the unwarranted attack on the Deputy Senate President, in spite of the fact that some people were saying that the Senate President was on some other assignments. That was why he did not preside at the plenary. It was tactical since the majority of those who were against it were Northerners. But some people believe it was tactical for the Deputy Senate president to preside over the session.
A member of the House of Representatives, representing Albasu/Gaya/Ajingi Federal Constituency of Kano State and a member of the New Nigeria’s Party (NNPP), Dr. Ghali Mustapha Tijjani, said that they were opposed to the Bills because they were not in the interest of the masses.
Also, he said that those who crafted the Bills were not conversant with the economic situation of the North. He said that the Northern Governors who receive the monthly federal allocations on behalf of their states were in a better position to know the financial position of the North and its revenue generating capabilities, hence his aligning with their position.
He said: “The bills actually are not in tandem with public interest and are not pro-masses. This is a capitalist bill and for such a reason, I, Dr. Ghali Mustafa Tijjani, I am rejecting these bills as a member that represents people. Remember, I’m in the parliament to ensure that my people are well represented and Nigerians get all the benefits and dividends of democracy. Therefore, these tax reform bills are capitalistic in nature and will siphon the poor, so to say.”
