The Leader of the Senate, Senator Opeyemi Bamidele (Ekiti Central), has called on Nigerians to support the Tax Reforms Bills under consideration in the National Assembly, saying it will make adjustments to the derivation sharing formula that will improve finances of states across the country.
In a Christmas message shared via a personally signed statement on Wednesday, he debunked claims that the bills were geared towards giving more states revenue than others, noting that four states, for example, were getting wrong calculations of what is due to them.
He stated, “Credible data have shown, for instance, the new model recommends 6.17% to Kano compared to 0.89% currently due to it. It recommends 1.21% for Zamfara compared to 0.05%. Currently, Lagos gets 80.26%, but the new model only recommends 15.28%, representing an 81% decrease. Under the new model, also, Rivers’ share will decline from 7.74% to 4.6%, accounting for 41%. With these figures, the narrative around the new derivation model is utterly incorrect and unfounded.”
The lawmaker, while urging Nigerians to “offer our timeless prayers for the renaissance of our Fatherland, for the restoration of her economy, for the stability of her polity, for the cohesion of her people across the Niger and for the manifestation of her glory in the league of Nations,” added that this is the season never to shy away from eternal responsibilities God Almighty has committed to our hands.
“This is the season to renew our resolve to faithfully stand with the political leadership for the renewal of hope. This is the season to halt the search for pastures that are never green, but the time to join hands together to build our own Nation with conviction and rebrand her for the ceaseless inflow of global capitals and for the endless troupe of global tourists”.
“This is the spirit behind key legislations and reforms we have promoted in the 10th National Assembly. From the Tax Reform Bills, 2024 to National Minimum Wage Act, 2024, Investment and Securities Act, 2024 and National Ranches Commission Establishment Bill, 2024, among others, we are simply committed to building an environment where businesses can operate seamlessly; where investors will never think twice before they bring in their capitals; where our compatriots can freely breathe without undue burden and where the next generations will be proud of at all times. We are pursuing each of these reforms purely in the love of our countrymen as Christ our Lord has commanded.
“This intention is more than evident in the case of Tax Reform Bills, 2024, a set of four initiatives consciously designed to reverse the country’s disturbing economic indicators. We have taken due note of public concerns about these initiatives. We are, as well, looking deeply into the areas of public concern. Our duty, as democrats, is not just to listen to our constituents, but also to give effect to policy initiatives that will positively impact their lives.
“For the record, the Tax Reform Bills, when finally enacted, utterly exempt all employees earning N1,000,000 annually or N83,000 monthly; exempt start-ups, shared services and technologically driven services from taxation and recommend zero VAT on essential services and consumptions. Even though it reviews the derivation formula to 60%, this proposal is guided purely by the principles of equity, fairness and justice. The new model will eventually guarantee a significant increase in VAT distributable to every state of the federation. “
