Following the transfer of the Finance Bill 2020 to the Nigerian Senate, Senator Solomon Adeola representing Lagos West has called for the need to review Nigeria’s tax system in order to stimulate the economy.
Adeola made the call during the consideration of the Finance Bill 2020 for second reading at the plenary on Wednesday.
The Senator said: “There is need to review our tax system. This will go a long way to stimulate the economy. Unofficially, the global economy is collapsing as a result of the pandemic. We need to put provisions in place to stimulate the economy.
“There is need for us to raise more fund. Some of these provisions by the Executive cannot give us the kind of fund we need.”
The Finance Bill 2020 is a Bill for an act to amend the Capital Gains Tax Act; Companies Income Tax; Personal Income Tax Act; Tertiary Education Trust Fund (Establishment) Act; Customs and Excise Tariff (Consolidated) Act; Value Added Tax; Federal Inland Revenue Service (Establishment) Act.
It also covers the Nigeria Export Processing Zone Act; Oil and Gas Export Free Zone Act; Fiscal Responsibility Act; Companies and Allied Matters Act 2020; and Public Procurement Act; in order to make further provisions in connection with Federal Government Financial Management; Public Revenue and other relevant matters connected therewith.
Senator Smart Adeyemi of Kogi West, supporting the bill, said: “I rise to support some of the highlights of this Bill. This is the time for us to expand our revenue net so that government can be able to finance some of the challenges of infrastructural development.
“If we want a change and we want to expand the net, it must be holistic.”
For his part, Senator Suleiman Bwari said: “I wish to commend some of the ways the Executive has put before us, measures to fund the 2021 budget. Some of them are really commendable. But Some of the ways here might be counter productive.
“I want to single out the use of unclaimed dividend to fund the 2021 budget. I think it should be reviewed by the Executive because if eventually the owner of these funds come up to claim them, the fund will not be readily available for use.
“I urged the Federal Government to look at something like the Pension Fund Administrative instead of hoping on the unclaimed fund.”
On capturing all income earners in the tax system, Senator Gabriel Suswam said: “We have what we call autonomous consumption. Those who come to the National Assembly hoping that they will run into a Senator who will give them fifty thousand to go and feed. How do the tax system capture such people?
“Because if we don’t do something a lot of people will continue to deviate into that system and it will become difficult to control.”
Calling for remittance of all generated revenues into Treasury Single Account, Senator Sani Musa said: “The Finance Bill (Amendment) is coming at the right time. So many countries are going into recession; the same thing as we are today. We have to look inwardly to see how we can support our economy. This Finance Bill is coming at the right time.
“But my major concern is the issue of collection and remittance from all those revenue generating agencies. This Bill should look into that. This Bill should make a provision whereby all these revenues that are being generated should go to TSA immediately.
“Most countries today operate the same thing and it works for them. If it works for them, I see no reason why it should not work here. I believe if we look at these areas, the Finance Bill will make us exit recession as quickly as possible.”
Senator Ibikunle Amosun recommended creation of a friendly system that will lead to increment in revenue generation.
He said: “We need to increase our revenue and to increase our revenue we must create a system that is friendly, not a system that people will run away from. A lot of things are happening in our banking sector.
“These days, a lot of people are afraid to invest in shares. Some that died, their next of kin could not access the shares. We need to create a system that will provide
jobs for our youths.
“Let us encourage our medium and small scale enterprises. Just as Senator Suswam said, a lot of people are out there begging. Nobody likes to beg. We need to take actions that will better the lives of our people.”
Senator Ike Ekweremadu, who called for subjecting the bill to public test, said: “We must not hurry this bill. It is important that we put it into public test and see what the Nigerian people will say. We must ensure that the people of Nigeria are carried along.”
The Finance Bill 2020 read the second time was after the consideration referred to the Committees on Finance, Customs, Trade and Investment to report back within two weeks with Committee on Finance as Lead Committee.
