By Jude Opara, Abuja

President Muhammadu Buhari has challenged lawmakers in the lower and upper houses to put the interest of the people first by adhering strictly to the provisions of the constitution.

Buhari restated the vivacity of the country to which its laws must be adhered to or altered to reflect some dynamisms and realities in the country.

Speaking yesterday in Abuja when he received the Conference of Speakers in the Villa, President Buhari stressed that the Nigerian Constitution was enshrined with standards for all public officers and institutions to operate upon.

“The Constitution upholds the standard for all public officers and institutional operations”, he said, adding that it must be strictly adhered to at all times.

“I try as much as I can to always be loyal and obedient to the constitution so long as it is humanly possible’’ Buhari said.

The President, therefore, urged Nigerian lawmakers to always place the interest of the people first in all deliberations and negotiations and stated that the autonomy of state legislatures had been constrained by the constitution.

In a statement issued by the Special Adviser to the President on Media and Publicity, Mr. Femi Adeshina in Abuja, Buhari  pledged that his administration would keep “pursuing the prosperity of all Nigerians by creating more jobs for the people and plugging the weaknesses exploited by many to make quick money.”

He recalled with with regret that “the 8^th National Assembly, sometimes kept the budget for seven months and I had to call the Senate President and the Speaker then. I told them by delaying passage of the budget, you are not hurting Buhari, but the people’’.

He frowned at the delay by the National Assembly to approve the nation’s budget despite his efforts to seek more understanding, adding that he would make extra effort to ensure equity and fairness that would put the ordinary Nigerian on top priority.

Buhari assured  that he would continue to focus on health, education, infrastructure with a view to improving lives through social intervention programmes.

  “We have in the last four years dedicated significant resources to key social service sectors especially in health, education as well as our massive social investment programs. We have also started restoring our infrastructure to levels that this country expects.

“I also want to assure you that we remain committed to ensuring that equity and fairness prevail in governance. I will ensure that we consult your conference to further enhance the positive impact of our interventions across the country,’’ President Buhari said.

Chairman of the Conference of Speakers, who is also the Speaker of the Lagos State House of Assembly, Mudashiru Obasa, commended the President for the fight against corruption and insurgency, and efforts to ensure financial autonomy for the legislature and judiciary.

Obasa appealed to President Buhari to issue an executive order directing the Accountant General of the Federation to separate funds for the state legislature and judiciary at the source.

He also urged the President to consider supporting the devolution of powers to states on some issues on the exclusive list like railway and the police for more effective governance.

Senate Approves 7.5% VAT Increase

  The Senate yesterday passed the Finance Bill, which was presented to the National Assembly by President Muhammadu Buhari in October.

The bill was seeking to among others increase the value-added tax (VAT) from 5 to 7.5 per cent.

With this passage, Nigerians will have to pay more for specific goods and services that attract VAT when President Buhari eventually signs it into law.

Other critical components of the amended bill from reforming the tax regime include; Petroleum Profit Tax Act (PPT), Custom and Excise Tax Act, Company Income Tax Act (CITA), Personal Income Tax Act, Value Added Tax Act, Stamp Duties Tax Act, and Capital Gains Act.

The Finance Bill had a speedy passage. It passed the second reading on November 6.

However, there was a mild controversy that trailed the passage as the members of the House Committee on Finance curiously shunned an earlier advertised joint public hearing with their Senate counterparts last Tuesday.

Addressing the media, Chairman of the Senate Committee on Finance, Solomon Olamilekan said there was no rift between the two committees adding that members of the lower chamber will be having their own public hearing next Tuesday. He also revealed that relevant persons were invited to discuss their reservations and their recommendations about the bill during the public hearing.

After a clause-by-clause consideration on Thursday, the bill was passed following the submission of the report by the Finance Committee.

After the anticipated concurrence by the House of Representatives, the bill will then be forwarded to the president for his assent.

While presenting the report, the committee chairman, Solomon Olamilekan said the bill will amend six tax provisions so as to make them more responsive to tax reform policies.

He also said that in carrying out their assignment, they took into cognizance what was obtainable in other countries of the world, while aiming to make it easier for businesses in Nigeria.

For instance, the Customs and Excise Tariff Act according to Olamilekan is to encourage local manufacturers. He said, it will subject certain imported goods to excise duties in a similar manner as goods produced locally.

He further explained that the seven Acts amended under the Finance Bill 2019 contained 56 Clauses.

He also said that one major objective of the bill was to raise additional revenue for the government, a development he insisted was crucial to the implementation of the 2020 budget.

Other objectives include: “promote fiscal equity by mitigating instances of regressive taxation, reform domestic tax laws to align with global best practices, introduce tax incentives for investment in infrastructure and capital markets and support small businesses in line with the on-going “Ease of Doing Business Reforms”.

The lawmaker, equally recommended that the Executive should be proposing to the National Assembly, Finance Bills to support the fiscal policies of the annual budget adding that such initiative should be sustained as an annual tradition.

In his contribution, Senate Leader, Abdullahi Yahaya, said the bill will improve the nation’s economy. He, therefore, urged his colleagues to look at the bill in a non-partisan manner and consider its approval.

“Let us swallow any political issues we have and go with the recommendations of amendments on the bill,” he said.

Also, in like manner, Senate President Ahmad Lawan said the Acts were amended to ensure that Nigeria’s tax system is streamlined to generate revenues for the government. He added that without proper funding, it may not be easy for the government to provide the necessary services and infrastructure to the Nigerian people.

“What we have done is very significant because this is to ensure that we not only have sources of funding but credible and reliable sources of funding for 2020 appropriation but also for subsequent activities of government.

“The revenue generating agencies will have to sit up. The national assembly particularly the Senate will be mounting a lot of oversight. If they have targets, we must ensure they meet the those targets and in good time” he concluded.

Meanwhile, the Senate has approved President Buhari’s request for an upward review of theValue Added Tax (VAT) from five per cent to 7.5 per cent.

Besides the VAT increase, there are seven other general amendments in the Finance Bill relating to taxes payable in the country.

Other areas affected by the bill are the Companies Income tax, Customs and excise, Petroleum Profit Tax, Stamp duties, personal income tax and Capital Income tax.

It is understood, however, that some Senators opposed the passage of the bill, noting that it will increase the sufferings and pains of Nigerians.

Those who opposed the bill include Senate Minority Leader, Enyinnaya Abaribe, and Senators Ifeanyi Ubah, Gabriel Suswan and Abba Moro.

Recall that the Minister of Finance,  Zainab Ahmed,

had earlier stated that the increase in VAT was targeted at fund generation to state governments for project implementation and specifically for the payment of the newly approved N30,000 minimum wage to workers.