Senator Orji Uzor Kalu Reveals Mistake FG Made in Tax Reform Bills Process

Senator Orji Kalu, representing Abia North in the Senate, has criticized the federal government for excluding key stakeholders from consultations on its proposed tax reform bills. Speaking during an interview with Arise Television, Kalu stated that the government erred by not involving the National Executive Council, the Nigeria Governors’ Forum, and the Council of State in the process.

Despite his criticisms, Kalu described the tax reform bills as “progressive,” noting their potential to reintroduce fiscal federalism in Nigeria. He remarked, “The bill is very progressive. It will bring back fiscal federalism. However, many senators have not been briefed. I think the federal government made a mistake. The initiators of the bills should have briefed the National Economic Council and Governors’ Forum.”

The proposed tax reforms, including the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill, were submitted to the National Assembly in October 2024. The bills gained traction last week after passing their second reading in the Senate.

However, their progress has not been without controversy. The Northern Governors’ Forum and the National Economic Council have both called for the withdrawal of the bills. Senator Mohammed Ali Ndume and others have also voiced strong opposition to the reforms.

Despite these challenges, economic experts have expressed support for the bills, arguing that they could significantly boost Nigeria’s revenue base. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has also weighed in, explaining the controversy surrounding the reforms and emphasizing the importance of addressing concerns raised by stakeholders.