The Senate on Wednesday slowed down the heat in the polity with the debate on the Tax Reform Bill by suspending further deliberations and setting up a committee to liaise with the executive branch of government to resolve the growing concerns on the proposed legislation.

At the Senate’s plenary session today, presided over by the deputy senate president, Senator Jibrin Barau, members agreed to step down the bills to review and address the contentious parts of the proposed law.

In his address to the senators, Senator Barau requested that the committee also meet with the Attorney General of the Federation (AGF) to further collaborate on resolving the growing issues on the matter.

“On the tax reform bills currently before us, we acknowledge that the Senate remains the highest legislative assembly in this country. The Senate comprises people of wisdom and experience, entrusted to legislate for the peace, stability, and development of the nation.

“The Senate of the Federal Republic of Nigeria, like similar bodies globally, serves as a stabilising force in times of difficulty or disagreement. Through dialogue and consensus, the Senate has consistently provided solutions to national challenges since 1999.”

“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. In collaboration with the Executive Arm of Government, we agreed to establish a forum to identify and address contentious areas to ensure 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. We also agreed that no other issues should aggravate the country’s current difficulties.

“It has been mutually decided between the Executive and the Senate to engage the Judiciary to sort out these matters. The Attorney General of the Federation will be involved in discussions to identify and resolve areas of disagreement for the nation’s benefit.

“Tomorrow, the committee established by the Senate, along with its leadership, will meet with the Attorney General to address these issues.”

“Consequently, the Senate Committee on Finance has been directed to pause further actions on public hearings and other matters related to the tax reform bills until the issues are resolved,” the deputy senate president said.

The committee members include all of the Senate’s leadership, as well as other members Adamu Ailero (PDP, Kebbi Central), Orji Kalu (APC, Abia North), Seriake Dickson (PDP, Bayelsa West), Titus Zam (Benue South), Abdullahi Yahaya (Kebbi), Adeola Olamilekan (APC, Ogun West), Sani Musa (APC, Niger East), and Adetokunbo Abiru (APC, Lagos East).

Since its introduction to the National Assembly for approval as law, the tax reform bill initiated by President Bola Tinubu has stirred up controversies across the country, particularly among the northern governors and some influential individuals who believed the bill would create economic disparity and crumble the region’s economic stability.

The four bills, namely, Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024 and Nigeria Tax Bill, 2024 seek to reform the nation’s taxation policy, and establish a clear and simple legal framework and settle all of the nation’s ongoing tax disputes.

The bills also seek to scrap the existing Federal Inland Revenue Service Act and establish the Nigerian Revenue Service, and the Joint Revenue Board Establishment Bill, which would create a tax tribunal and tax ombudsman.

Furthermore, the bills seek to address the sharing formula by reducing the Federal Government’s share from 15% to 10% while increasing state derivation sharing from 20% to 60% on generation and consumption.

Although the bills passed on to the second reading in the Senate last week, the members of the House of Representatives refused to move forward on the proposal due to pressure from their state governors, leading to its indefinite suspension in the lower chamber.