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Tax Reform Bills Propose New Sharing Formula, Cede 55% to State Govt

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The Senate on Thursday resumed its debate on the Tax Reform Bills, a set of four legislative proposals to increase value-added tax (VAT) distributable to the subnational governments to 55% while reducing the federal government’s share to 10%.

The new legislative regimes also proposed zero VAT on exports and essential consumptions by the masses and grant of input VAT credit on assets and services in addition to goods consumed by businesses to lower the cost of production

These far-reaching initiatives were contained in the lead debate of Leader of the Senate, Senator Opeyemi Bamidele on the Tax Reform Bills at the Senate Chamber, National Assembly Complex, Abuja yesterday.

The Federal Executive Council had proposed the Tax Reform Bills comprising the 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.

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The bills elicited spirited interests among key lawmakers and stakeholders across party lines, a situation that informed the leadership of the Senate to invite Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele and Chairman, Federal Inland Revenue Service, Dr. Zacch Adedeji to brief its plenary.

Leading debate at the plenary, Bamidele reeled out far-reaching proposals contained in the Tax Reform Bills, which according to him, aims at simplifying the tax landscape, reducing the burden on small business and streamlining how taxes are collected.

In the area of tax exemptions, Bamidele pointed out that those, whose salaries are not more than the minimum wage from Pay As You Earn (PAYE) deductions, would be exempted from the tax regime.

He also said small businesses with annual turnover of N50 million or less “are equally exempted from payment of taxes,” a key pro-business initiative that encourages job creation; deepens ease of doing business and incentivises more investments.

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Similarly, the senate leader explained that there was a proposed huge reduction in company income tax from the current 30% to 25% that would last for at least two years.

He said: “As part of deliberate attempt to curtail the incidence of double taxation and multiplicity of taxes and levies, multiple taxes hitherto paid by companies under various tax heads namely 2.5% education tax, 0.25% NASENI tax have been harmonized into a development level of 2% which by 2030 will be applied to fund the newly established student loan scheme which will benefit many Nigerian youths.

“Unlike what is obtainable under the existing tax regime whereby the Federal Government takes a lion share of VAT revenues, it is proposed that the sharing formula should allow the State Government share 55% of VAT revenue from the current 15% to 10% sharing formula.

“However, Local Governments share of VAT revenue remains unaffected. Relatedly, basic items consumed by Nigerian households such as food items, medical services and pharmaceuticals, educational fees, electricity etc. are exempted from VAT.

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“Again, as part of efforts to ease the administration of income taxes and levies across the Federation, there is a reasonable effort made to consolidate core tax statutes and related tax legislations,” Bamidele explained.

Contrary to misrepresentations in the public domain regarding the intendment of the Bills under consideration, Bamidele explained that the bills contained innovative and people-oriented proposals as part of the government’s deliberate fiscal and tax reform measures to cushion the effect of ongoing broader economic policies such as the removal of subsidy on petroleum products, renewed efforts to implement cost -reflective electricity tariffs in the power sector etc on Nigerian citizens.

In his contribution, former Chief Whip of the Senate, Senator Ali Ndume (Borno South) claimed that his problem was about timing and the issue of derivation.

He added that the Constitution of the Federal Republic of Nigeria, 1999 (as amended) must be amended before the Tax Reform Bills should take effect, therefore calling for its immediate withdrawal.

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Ndume observed: “I am not against the reform, my problem is timing and the issue of derivation make the reform contagious. The 1999 Constitution has to be amended before the bills can be effective.”

However, the Chief Whip of the Senate, Senator Mohammed Munguno (Borno North) expressed strong objection to Ndume’s submissions, asking the Senate to disregard it and pass the bills for second reading.

Munguno urged the Senate to pass the bill into second reading, advocating that all areas of concern would be addressed at the public hearing stage.

After the debate that featured Chairman, Senate Committee on Finance, Senator Sani Musa and Chairman, Senate Committee on Ecology, Senator Seriake Dickson, the Senate unanimously passed the bills into second reading following Munguno’s final position.

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In his remarks, the President of the Senate, Senator Godswill Akpabio referred the bill to the Senate Committee on Finance, advising the Committee to invite all the stakeholders to the public hearing to address all areas of concern.

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Adeboye advised me to pay my wife full salary after resigning from her banking job-Bakare

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Popular man of God Pastor Tunde Bakare has narrated how RCCG Senior Pastor Eunuch Adeboye advised him to pay his wife full salary after she quit her job.

Hear him:

“ Pastor Adeboye told me to be paying the full salary of my wife when she resigned from her bank job without telling me”.

“ When my wife told me she had resigned, I drove to my father-in -law’s house to report her but he told me that nothing concerns him with our marriage.

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“I then drove straight to Redemption Camp to report her to Pastor Adeboye. I told him how my wife just resigned from her bank job without telling me and that I just started my chambers and we were just making it little by little and her salary would help us augment whatever I gave her.

“Pastor Adeboye’s response shocked me. He said, “ Wow,she did that on her own! Don’t u think that’s a great thing to do? She did it to focus attention on your child. If all women would do that Nigeria would be a better place. He then told me that apart from house allowance, I must be paying her the salary she earned at the bank since she resigned to start working in my house and taking care of the children.”

“I wasn’t happy with the counsel because I was scared of how I would cope as the sole breadwinner of the house. The Holy Spirit then took me to Isaiah 54:5 and showed me a Scripture I will never forget,” I,the Lord your God,your maker, I am your husband. The Holy Spirit then said if I am your husband, treat your wife the way you want me to treat you! “

“I was sober and I prayed.The next month instead of giving her 375 Naira, her salary in the bank, I gave her 500 Naira and I also gave another 500 Naira for house allowance. It has grown since then!”

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* Culled from his autobiography, the last but definitely not the least*

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SAD! One casualty, six injured as bus collides with truck on Ikorodu road

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A terrible road crash at Majidun, inward Ogolonto, Ikorodu Road, has left one woman dead and six others grievously injured, the authorities have confirmed.

The Lagos State Traffic Management Authority (LASTMA) revealed that the accident involved a Volkswagen commercial bus, registration number EPE 494 XM, and a stationary tipper truck.

In a statement signed by the Director, Public Affairs and Enlightenment Department of LASTMA, Adebayo Taofiq, said that Preliminary investigations indicate that the bus, chartered to ferry passengers to a programme in Ogijo, suffered a sudden brake failure while reportedly speeding recklessly.

However, the driver lost control, slamming violently into the tipper truck parked at the roadside for diesel.

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The violent collision claimed the life of an adult female passenger instantly.

Five women and one man sustained severe injuries and were rushed to Benic Special Hospital for emergency treatment. The deceased was taken to General Hospital, Ikorodu, for formal documentation.

The statement read, “The brutal impact resulted in the instantaneous death of an adult female passenger, while five female occupants and one male sustained severe and life-threatening injuries. While all 5 injured casualties were rushed to nearby Benic Special Hospital, the remains of the deceased were immediately transferred into the custody of security personnel who conveyed them to the General Hospital, Ikorodu, for urgent formal documentation.

“In a swift and highly coordinated response, LASTMA operatives pursued and apprehended the tipper truck driver who attempted to abscond upon witnessing the enormity of the tragedy. The driver of the commercial bus was likewise arrested. Both individuals were thereafter handed over to officers of the Ipakodo Police Division for comprehensive investigation.

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“To re-establish order and ensure seamless vehicular movement toward Ikorodu Garage, LASTMA personnel efficiently removed the mangled remains of both vehicles from the roadway.

“The General Manager of LASTMA, Mr. Olalekan Bakare-Oki, conveyed profound grief over the harrowing incident and extended his heartfelt condolences to the bereaved family.

According to the statement, “He prayed that Almighty God grants them the fortitude to endure the irreplaceable loss, and he wished the injured victims a swift and full recovery.

“Mr. Bakare-Oki further admonished motorists to exercise utmost restraint, vigilance, and discipline on the highways by avoiding excessive speed.

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“He stressed that overspeeding drastically impairs a driver’s capacity to respond to sudden mechanical failures or unforeseen hazards, thereby magnifying the risk of catastrophic outcomes.

“Bakare-Oki reaffirmed LASTMA’s resolute commitment to the protection of lives and the promotion of safer motoring culture across Lagos State.

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2027: Despite Ex-President Jonathan’s unusual silence, supporters storm PDP convention with posters(Photos)

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Despite Ex-President Goodluck Jonathan’s unusual silence towards his 2027 presidential aspiration, many Peoples Democratic Party members who support former President Goodluck Jonathan’s political comeback were seen at the party’s current elective convention in Ibadan, the capital of Oyo State.

With Bala Mohammed, the governor of Bauchi State, projected as Goodluck Jonathan’s running mate, the supporters were seen raising flags.

According to an online newspaper there has been conjecture on Jonathan’s potential return to run for president in 2027.

Despite the former president’s silence on the subject, his allies attested to his purported preparedness to run in the much awaited election.

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On Friday, posters of Oyo State Governor Seyi Makinde were seen at the convention site.

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