The Senate has announced plans for extensive consultations with key stakeholders before holding public hearings on the proposed tax reform bills.
Senator Sani Musa, Chairman of the Senate Committee on Finance, made this known during a media briefing yesterday.
Describing the bills as sensitive fiscal instruments, Musa emphasized the need for careful consideration to ensure they address the nation’s economic challenges effectively.
“Tax reforms are crucial for any country aiming to advance its economy. While taxes are not direct tools for economic growth, they are essential for driving production, which in turn generates revenue,” he explained.
He called for unity in addressing the reforms, urging Nigerians to focus on national progress rather than regional differences. “This is about Nigeria as a whole. What benefits one region should benefit others. We will ensure the right decisions are made for the country’s good,” Musa assured.
Meanwhile, Senator Jimoh Ibrahim, Chairman of the Senate Committee on Inter-parliamentary Relations, has proposed the introduction of transactional taxes targeting wealthy Nigerians.
Speaking at a separate press briefing in Abuja, Ibrahim argued that affluent individuals in Nigeria are not contributing enough in taxes, particularly on luxury assets.
“The rich need to pay more taxes. While they contribute to employment, they should bear a greater burden, especially when it comes to luxury acquisitions. This is an area that requires urgent attention,” said Ibrahim, who represents Ondo South Senatorial District.
He disclosed plans to sponsor a bill imposing transactional taxes on the wealthy, highlighting the low GDP-to-tax ratio in Nigeria, currently at 18 percent. “Approximately 72 percent of Nigerians are outside the tax net. We must address this imbalance without burdening the poor but ensuring the wealthy contribute their fair share,” Ibrahim concluded.