Henry Seriake Henry Dickson, HSD, the Senator representing Bayelsa West in the National Assembly, has thrown his weight behind the tax reform bills being proposed by President Bola Tinubu.
Although the bills have passed the second reading, Dickson in a statement, anchored his support on his belief and fight for a truly federal Nigeria where the principles of fairness, justice, all inclusivity and devolution of powers to the federating units are upheld.
However, the immediate past governor of Bayelsa State, observed that the bills are not perfect and the president could have consulted more with state governors and other critical stakeholders but he noted that they contain good elements.
Dickson also pointed out that the country deviated from a tax-driven economy once oil was discovered in the creeks of the Niger Delta.
According to him, Nigeria used to tax cattle, canoes and bicycles unlike now when people hardly pay taxes, leading to a very low Tax to GDP ratio of under 7%, which is way below the African average of 15%.
He posited that Nigeria urgently needs a comprehensive tax reform as well as the need to protect the tax rights of the oil-producing states where staff of oil companies reside in Lagos and other cities and are flown daily to and from Eket and Ibeno in Akwa-Ibom State, Bonny in Rivers State, Brass and Koloama in Bayelsa State and Forcados and Ogulagha in Delta State.
Dickson urged Nigeria to take advantage of the Tinubu tax reform to ensure that the tax revenues on those oil workers as well as the oil service contracts executed in these states are calculated and remitted to those states in accordance with the derivation principle and not to Lagos State or any other state where their headquarters are based.
He insisted that taxes of products should be collected, worked out and sent to the states where the production take place instead of where the administrative office is located.
The former governor held that doing this would meet the requirements of federalism, devolution, respect for the federating units as well as respect for the principle of derivation.
Additionally, Dickson said this would encourage states to be productive such that those who govern the states or aspire to, will know their responsibility which is to provide law and order, create stability and promote investment and productive economic activities to generate and increase tax revenues for their states.
He explained that these are his reasons for supporting the bills, adding, however, that more detailed discussions would be held on them at the committee level where there would be an interface with all stakeholders in the country, adding those who have issues would have the opportunity to express themselves in the national interest or according to the laws and constitution before the bills are passed.
This notwithstanding, Dickson urged the Senate to proceed to the next level, urging governors of the south-south states and state governors to conduct detailed examination of the implications of these laws on their state tax revenues and positions and forward the same to the National Assembly members.