Reps boycott hearing on Finance Bill – TheNigerialawyer

Members of the House of Representatives yesterday boycotted a
public hearing on the Finance Bill, organised by a joint committee
of the National Assembly to collate stakeholders’ views on the
seven bills submitted by President Buhari last month.

The finance bill was introduced by the Federal Government to
boost its revenue base for the projections of the 2020 budget
estimates.

In giving the proposed tax reforms legislative inputs, the
finance bill had passed second reading in both chambers penultimate
week.

The aggrieved lawmakers alleged secrecy in the planning of the
hearing which they claimed was funded by a government agency.

One of them alleged: “The Senate treats us with disdain and this
has to stop. We only heard about the hearing when we saw the
adverts in the newspapers. This is an insult and this has to
stop.”

The Senate, however, went ahead with the hearing and considered
the seven bills including the Company Income Tax 2004, the Value
Added Tax 2007, the Customs and Excise Tariff 2004, the Personal
Income Tax 2007, the Capital Gains Tax 2007, the Stamp Duties Act
2004 and the Petroleum Profit Tax 2004.

At the hearing session, stakeholders disagreed on the proposal
to increase Value Added Tax from 5% to 7.5 % as well as N50 stamp
duties on all forms of transaction and percentage increase on
Petroleum Profit Tax .

The Oil Producers Trade Section (OPTS), in a presentation by its
spokesperson, Shobayo, said “the introduction of 7.5- 10%
withholding tax on dividends paid out of petroleum profits as
contained in sections 5& 26 of the bill would increase tax
liability in addition to the pre-existing 85% PPT rate and erode
returns on investment.

The Manufacturers Association of Nigeria kicked against the
proposed VAT increase and N50 stamp duties.

The Minister of Finance , Zainab Ahmed and the chairman of the
committee, Senator Solomon Olamilekan Adeola, said the proposed
reforms were geared towards sweeping changes in government’s
taxation policy for sustainable economic growth and
development.