By Okeke Eunice
Senate Leader Opeyemi Bamidele has highlighted the significance of tax reforms as a key component of the legislative agenda aimed at revitalizing the economy and advancing national development.
In his Christmas message on Wednesday, the senator stressed the importance of unity in tackling Nigeria’s challenges, particularly through innovative legislative solutions.
Drawing inspiration from Christ’s teachings, Senator Bamidele encouraged reflection and compassion during the holiday season, urging Nigerians to remain hopeful and actively contribute to the country’s progress.
He reaffirmed the 10th National Assembly’s dedication to passing laws that foster a business-friendly environment, attract investments, and ease the economic hardships faced by citizens.
Central to his message was his defense of the Tax Reform Bills, 2024, which he described as a series of four measures designed to address Nigeria’s unfavorable economic indicators.
Senator Bamidele stated, “Employees earning less than N1,000,000 annually (approximately N83,000 monthly) would be exempt from taxes. Start-ups, shared services, and technology-driven businesses would benefit from tax exemptions, while essential goods and services would be excluded from Value Added Tax (VAT).”
He also noted that the reforms include a proposed revision to the derivation formula, increasing the portion of VAT allocated to states and promoting fairness in resource distribution.
Senator Bamidele used data to illustrate how the new model would lead to significant increases in revenue shares for states such as Kano and Zamfara, while states with higher revenues, like Lagos and Rivers, would see reductions to ensure greater equity.
He remarked, “We have carefully considered public concerns regarding these initiatives and are thoroughly examining the issues raised.”
“Our responsibility as democratically elected representatives is not only to listen to our constituents but also to implement policies that will improve their quality of life.”
The Senate Leader stated, “To clarify, the Tax Reform Bills, once enacted, will completely exempt employees earning N1,000,000 annually or N83,000 monthly from taxation. It will also provide tax exemptions for start-ups, shared services, and technology-driven businesses, while proposing zero VAT on essential goods and services.
“Although the derivation formula is revised to 60 percent, this adjustment is based solely on the principles of equity, fairness, and justice.
“The new model is designed to ensure a significant increase in the VAT allocations for every state in the federation.
“For example, according to reliable data, the new model allocates 6.17 percent to Kano, compared to its current 0.89 percent, and 1.21 percent to Zamfara, up from 0.05 percent. Meanwhile, Lagos, which currently receives 80.26 percent, will see its share reduced to 15.28 percent, an 81 percent decrease.”
“Under the proposed model, Rivers State’s share will decrease from 7.74 percent to 4.6 percent, a reduction of 41 percent. These figures demonstrate that the criticisms of the new derivation model are entirely baseless and misleading,” the Senate Leader explained.
He emphasized that the reforms are not solely focused on revenue generation but are firmly rooted in the principles of equity, fairness, and justice.
Assuring constituents that their concerns were being considered, he promised that the National Assembly would ensure the final legislation reflects the interests of all Nigerians.
“Amid the discussions on the Tax Reform Bills, we remain guided by the teachings of Christ and our duty as representatives of the people. We will never pursue any agenda that conflicts with our oath of office or undermines the welfare of our constituents and the nation as a whole,” he said.
He concluded by extending warm wishes for the season, saying, “With all my heart, I wish you a joyful celebration during this time of deep reflection. Merry Christmas and a Happy New Year in advance.”