Seriake Dickson: Heaven will not fall if national assembly passes tax bills

Seriake Dickson, the senator representing Bayelsa west, has expressed support for the tax reform bills being considered by the national assembly.

Speaking with journalists on Monday in Abuja, Dickson reportedly said “heaven will not fall” if the four bills are passed into law.

BACKGROUND

In October, President Bola Tinubu asked the national assembly to consider and pass four tax reform bills.

The four bills are the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill and the Joint Revenue Board Establishment Bill.

The Northern States Governors Forum (NSGF) opposed the bills, while the national economic council (NEC) asked Tinubu to withdraw them for further consultation.

In the Nigeria Tax Administration Bill 2024, the legislation proposes a new VAT sharing model as follows: 10 percent for the federal government, 55 percent for states and 35 percent for LGAs.

Under this proposal, states will use the sharing ratio of 20:20:60 — equality, population, derivation.

In the current VAT sharing formula, the federal government takes 15 percent, states take 50 percent, while 35 percent goes to the LGAs.

States usually use the 50:30:20 sharing ratio — 50 percent for equality, 30 percent for population and 20 percent for derivation.

The proposed increase in VAT derivation from 20 percent to 60 percent has elicited criticisms, especially from northern stakeholders.

‘CRITICS SHOULD PRESENT THEIR DATA’

Dickson said the national assembly will organise public hearings for the tax bills, adding that lawmakers will not be intimidated by the uproar generated by the legislation.

The former Bayelsa governor said the national assembly was able to pass the Petroleum Industry Act despite the criticism from host communities.

The senator said heaven will not fall if the national assembly passes the controversial tax bills, according to Premium Times.

He added that critics of the bills should present “statistics” in support of their arguments.

“The tax bill is a law like every other law and it has to go through the normal legislative process,” the senator said.

“Right now, taxes from Bayelsa State are paid to Lagos State and I don’t want that to continue.

“When there is consumption of any goods or services from any state it should be calculated and paid to that state.

“Now there is an opportunity to review the tax laws, to correct the anomalies and that’s why I’m in support.

“I know there are states that are feeling that when they apply the new sharing formula, they will earn less.

“It is for them to raise those issues and bring the statistics. I don’t go by sentiments. I go by what is right and in the national interest.

“The PIA was passed. We wanted 10 per cent, which was what Yar’adua proposed.

“They reduced it to three per cent. Heaven did not fall. These tax reform bills will pass and heavens will not fall.”