Senate plans bill on emergency intervention to stimulate economy.

Senate plans bill on emergency intervention to stimulate economy.

The Senate has expressed its commitment to adopting measures aimed at alleviating the prevailing economic hardship in the country.

It hinted that it was planning a bill on emergency economic intervention which included addressing exchange rate management issues, reviewing tax waiver policy, overcoming the challenges of inflation, poverty, and creating jobs.

The Senate gave the hint at the weekend in a communique issued at the end of the 3-day Retreat for Senators of the 10th National Assembly on Fiscal Policy and Tax Reform in Ikot Ekpene, Akwa Ibom state.

It said there was a need to consider and approve the Emergency Economic Intervention Bill from the Executive as a proposed legislation from the Presidential Committee on Fiscal Policy and Tax Reforms.

It noted: “To address exchange rate management issues, challenges of inflation, address poverty, and create jobs, there is a need to consider and approve the Emergency Economic Intervention Bill from the Executive as a proposed legislation from the Presidential Committee on Fiscal Policy and Tax Reforms.

“Enactment of an Emergency Economic Intervention Bill. This will address critical socio-economic issues concerning foreign exchange management, tackling inflation, stimulating economic growth, and creating more jobs.”

Again, the Senate said that there was a need to enhance public spending efficiency by “tackling corruption in government spending in order to provide commensurate fiscal exchange to citizens and boost tax morale.”

It also disclosed its plan to legislate on the consolidation of revenue collection legislation into a single agency, saying the initiative is to curb duplication, tackle corruption and ensure seamless transactions by taxpayers.

It also noted that “it would simplify the tax system, reduce duplication of efforts, and make it easier for taxpayers to comply with the law.”

According to the communique, lots of tax policies, for instance, the Stamp Duty Act of 1939 shall be reviewed to conform to the present realities of doing business in the country.

It said that there is a “need to enhance public spending efficiency, by tackling corruption in Government spending in order to provide commensurate fiscal exchange to citizens and boost tax morale.”

The Communique reads: “The situation where many agencies of government are involved in collecting taxes and new laws continue to make it the responsibility of these agencies to collect taxes should be halted, through a legislative resolution.

“Bills on taxes should be presented as Executive Bills and not as private member Bills. There is a need to review the tax waiver policy to ensure it is aligned with the revenue mobilization drive of the government by making the waiver process more transparent and accountable.

“Review the Stamp Duty Act of 1939 and other obsolete and anachronistic laws in conformity with present realities.

“Establish clear and transparent guidelines for revenue retention. The government should establish clear and transparent guidelines for the amount of revenue that revenue-generating institutions are allowed to retain.

“These guidelines should be based on objective criteria, such as the institution’s verified operating costs and investment needs by the relevant authorities and committees of the National Assembly.

“Need for effective management of resources by adopting technology in expenditure management, driving adherence to fiscal rules and benchmarks, establishing a national fiscal risk framework for revenue, debt, and expenditure.

“Nigerian Government should consolidate revenue collection into a single agency like the FIRS. This would simplify the tax system, reduce duplication of efforts, and make it easier for taxpayers to comply with the law.

“Work with the Executive to review the National Development Plan to integrate the 8-point Agenda of the President and consider legislating aspects of the Agenda for holistic implementation.

“There is a need to consider relevant constitutional amendments to pave the way for a 5-year development plan to cater for projects and ensure continuity while limiting abandoned projects.

“Enforce consequences for violations of any provisions of the law regarding monetary and fiscal matters. This will require amendments to the relevant laws to ensure effective oversight and enforcement of the consequences, as the case may be.

“Need for legislation that clearly defines the taxing rights of the three levels of government. There is a need for legislative intervention to promote the optimization of revenue from non-oil sources, especially in the solid mineral sector.

Credit: The Nation Newspaper.