The Nation Newspaper

Tag: tax reform Bills

  • Tax Bills likely for passage before Sallah, Easter break

    Tax Bills likely for passage before Sallah, Easter break

    The Senate and House of Representatives may pass the Tax Reform Bills before embarking on the upcoming Sallah and Easter break, it was learnt yesterday.

    Finance Committees in both chambers have begun the collation of their report on the four Tax Reform Bills.

    They are the Nigeria Tax Bill (NTB) 2024, Nigeria Tax Administration Bill (NTAB) 2024, Nigeria Revenue Service (Establishment) Bill (NRSEB) 2024 and the Joint Revenue Board (Establishment) Bill (JRBEB) 2024.

    Chairman of the Senate Committee on Media and Public Affairs, Senator Adeyemi Adaramodu, said both the committees were working on their reports.

    He said: “The Senate Committee on Finance and House Committee on Finance are currently working on their reports.

    “When they are through, they will sit down to harmonise any grey areas so they can present the same document before both chambers on the first legislative day of next week.

    Read Also: Lassa Fever kills doctor, 97 others in Nigeria

    “The report would then be considered and passed in both chambers before it is transmitted to the President for assent.

    “Both the Senate and House of Representatives Committees would present their reports next week for consideration and passage.”

    In a tweet on his X-handle, Chairman of the Committee, James Abiodun Faleke, assured Nigerians that the House would produce legislation that everyone would be proud of.

    House Spokesman, Akintunde Rotimi, could not be reached.

  • Nigerians’ verdict on tax reform bills

    Nigerians’ verdict on tax reform bills

    By Abdullahi Ismaila Ahmad

    The public hearings conducted recently by the two Chambers of the National Assembly have elicited positive responses from a broad spectrum of Nigerians, cutting across regional interest groups, government agencies, civil society groups, concerned individuals, the academia, and Labour Unions, among diverse others.

    Contrary to a few dissensions hitherto expressed in the media, almost all the stakeholders who spoke during the week-long sessions were unanimous in their declaration that the hallowed Chambers should pass the tax reform bills after a clean-up of the grey areas.

    The public hearings were auspicious for all Nigerians desirous of economic growth and fiscal responsibility. They were also a watershed moment for the Federal Inland Revenue Service, which had been upbeat about the tax reforms. Indeed, the public hearings had rekindled hope in the tenets of democracy that guarantee freedom of expression and equitable space for cross-fertilisation of ideas. Without gainsaying the fact, the tax reform bills have been unarguably about the most thought-provoking issues in Nigeria today, drawing variegated perspectives and commentaries from even unlikely quarters such as the faith-based leaders, student bodies, and trade unions, which speaks much about the importance of the bills.

    In the build-up to the public hearings, not many people believed that the bills would make it to the second reading, much less the public hearings. Even the Northern stakeholders who seemed unlikely to support the passage of the bills have softened their stance and have given valuable suggestions that would enrich the substance of the bills.

    The Arewa Consultative Forum came to the public hearings well-prepared with a printed booklet that addressed their concerns. It concluded with an advisory that the bills should be “Well planned, properly communicated, strategically implemented and ample dialogue and political consensus allowed for the reforms to be accepted.”

    Read Also: Future of Nigerian democracy tied to women participation in electoral process, says INEC

    The concerns of ACF ranged from the composition of the proposed Nigeria Revenue Service Board as contained in Part 111, Section 7 of the bill, the unlimited  Presidential power to exempt/wave tax payment as proposed in Section 75(1) of the bill, the family income or inheritance tax as contained in Part 1, Section 4(3) of the bill, to the issues around development levy and VAT. On the development levy, the ACF stated that unless the Federal Government is considering budgetary funding for TETFUND, NASENI and NITDA, it does not see the “wisdom behind the plan to replace (them) with NELFUND.”

    The position of the North was equally reinforced by the Supreme Council for Shariah in Nigeria, Northern Elders Forum, Kano State Government, Professor Auwalu Yadudu, and the FCT Imams.

    Like the ACF, these stakeholders lent their respective voices to the Section on the Inheritance Tax in Part 1 of the bill and the use of the term ‘ecclesiastical’, which, in their views, undermines certain religious rights and beliefs. The Kano State Government, represented by Mahmud Sagagi, affirmed that “we support tax modernisation” but cautioned that “we must ensure that this process does not come at the expense of states’ constitutional rights and economic stability.”

    Professor Auwalu Yadudu, a constitutional law professor, drew attention to the use of the ‘supremacy clause’ and cautioned that the repeated use of “notwithstanding” in the bills would undermine the supremacy of the Nigerian constitution if passed as such.

    Other stakeholders that made contributions at the sessions included the Nigeria Liquefied Natural Gas, Fiscal Responsibility Commission, Revenue Mobilisation Allocation and Fiscal Commission, Federal Ministry of Industry, Trade and Investment, Institute of Chartered Accountants of Nigeria, Chartered Institute of Taxation of Nigeria, Nigeria Customs Service, and a host of others.

    While most of their concerns bordered on technical issues requiring fine-tuning, they were unanimous in their support for the bills. They aligned with the position of the Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji, Ph.D. and the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, which is that the extant tax laws and fiscal regulations are obsolete necessitating reforms aimed at creating a fair and equitable tax and fiscal space to grow Nigeria’s economy.

    In one of the sessions, Dr Zaach Adedeji expounded on the crisscross of trade activities in the Free Trade Zone whereby companies misuse tax waivers as exporters to sell their goods or services in the Customs Area at an amount usually less than the price the operators in the Customs Area who pay VAT and other taxes sell theirs thereby disrupting business transactions.  This way, the operators in the Free Trade Zone shortchange the government in paying their due taxes by circumventing extant regulations, which are inimical to the economy’s growth.

    Overall, the presentations were forthright, foresighted, and helpful in elucidating the issues contained in the bills.

    According to the statistics read out at the end of the hearings at the Senate, 75 stakeholders were invited, 65 made submissions, and 61 made presentations.

    At the House of Representatives 53 stakeholders made presentations. By all means, this is a fair representation. Given the presentations, it is evident that the National Assembly has gathered enough materials to guide its deliberations on the bills. As we look forward to the passage of the bills, we commend the leadership of the National Assembly for their unwavering commitment to making the bills see the light of the day.

     •Abdullahi is the Director of the Communications and Liaison Department, FIRS.

  • Tales from public hearing on Tax Reform Bills

    Tales from public hearing on Tax Reform Bills

    • By Arabinrin Aderonke

    If Nigerians genuinely seek economic growth and financial stability, we must recognize that taxation is not a choice. It is a necessity. When President Bola Ahmed Tinubu introduced the Tax Reform Bills in October 2024, it signified another move toward creating a more efficient, transparent, and equal tax system (similar to removing fuel subsidies). As with every big reform or decision, there will always be people who see change as an opportunity and those who see it as a threat.

    For many years, Nigeria’s tax structure was inefficient, with leakages, multiple taxes, and an overreliance on oil money. Things changed when Dr. Zacch Adedeji became the Chairman, Federal Inland Revenue Service (FIRS), bringing transparency and efficiency.

    The proposed bills, Nigeria Tax Administration Bill, Nigeria Revenue Service Bill, Joint Tax Board Bill, and Nigeria Tax Bill, seek to simplify tax collection, reduce tax evasion, and ensure revenue is directed toward national development. These measures will improve the ease of doing business, encourage investment, and establish a more equitable system in which big companies pay their fair share. With improved enforcement and fewer loopholes, the government can increase money without burdening citizens. However, instead of seeing the big picture, some opponents focus on minor issues, rejecting the reform rather than strengthening it.

    The public hearing on these bills has been a battleground of ideas, where stakeholders have voiced their support, scepticism, and outright opposition. Over the past 5 days, lawmakers, tax professionals, industry leaders, and even religious organizations have all voiced their opinions, offering perspectives that range from practical concerns to strongly held beliefs. But amid the arguments, one thing is undeniable: Nigeria can not afford to maintain the status quo.

    Read Also: Tax Reform: All views will be considered, Speaker Abbas assures Nigerians

    Some religious groups, like the Supreme Council for Shariah in Nigeria and the Committee of FCT Imams Initiative, oppose the inheritance tax, claiming it violates religious rights. But inheritance tax is not a new idea. It exists globally to promote economic fairness. Nigeria is not religious-rule. Our laws balance secular and customary principles. If there are concerns, the bill can be adjusted to ensure fairness. However, rejecting it entirely distracts from the goal of building a tax system that benefits everyone.

    The Trade Union Congress and others oppose raising VAT from 7.5% to 15 percent by 2030, fearing it will worsen the cost of living for everyday Nigerians. While their concerns are valid, the government needs revenue for infrastructure and social amenities. A gradual increase, with exemptions for basic goods, can ease the impact. Many countries fund public services this way, and Nigeria can consider this approach.

    The Nigeria Customs Service also raised concerns that the new tax laws will interfere with its duties. But this is not about power. It is about making things work better. The reforms will help government agencies work together and fix long-standing problems in revenue collection.

    Fighting change will only slow down progress. Now that the hearings are over, the next step is to improve the bill where needed, not abandon it. Those against it should ask themselves: Do we want a Nigeria where the rich avoid taxes while ordinary people struggle? Do we want to keep losing revenue due to loopholes? Or do we want a fair system where everyone contributes to national growth?

    While the Senate and House of Representatives have promised to thoroughly review the bill, Nigerians have much to gain from its passage. This reform will enhance the economy, create a fairer tax system, and better livelihoods. If implemented effectively, it will ensure that the benefits of democracy reach everyone, not just a select few. The opportunity is here, we just need to seize it and make it work for everyone.

    •Aderonke is the technical assistant on broadcast media to the executive chairman of the Federal Inland Revenue Service.

  • Tax Reform Bills: NASS targets geo-political zones’ demands

    Tax Reform Bills: NASS targets geo-political zones’ demands

    • Plans three-day retreat to review public hearing submissions
    • ‘Rejigged bills to aid realisation of Tinubu’s $1trn economy’

    Fresh from its conduct of public hearings on the Tax Reform Bills, the National Assembly now says the planned legislation will remove all the fears entertained about them in some parts of the country, and meet the aspirations of the different geo-political zones.

    The Senate is already planning a three-day retreat to consider the inputs made during the two-day public hearings held last week.

    Chairman of the Senate Committee on Finance, Senator Sani Musa, told The Nation that the National Assembly would leave no stone unturned in producing tax reform bills that can stand the test of time.

    “We are going to work assiduously and we are going to consider every submission, every memorandum that has been given,” he said.

    “The verbatim presentation that people have done, we have it on record.

    “We are going to review everything. After this, we are going to go for a three-day retreat, and during the retreat, we are going to consult with experts.

    “We are consulting also with the Office of the Attorney General of the Federation so that we see how we can present a law or an Act that is workable, that would not conflict with the Constitution of the Federal Republic of Nigeria.

    “We are taking the advice of everyone that had made the presentation. We are going to consider everything on its own merit.

    “We are not particularly looking at which organisation or which entity presents, but what is going to be acceptable to all Nigerians, what is going to be acceptable to all regions of this country, because what we are trying to do is to present a law that is workable.”

    He also said the bills, when they become operational, would aid the realization of President Bola Tinubu’s planned $1 trillion economy for the country.

    His words: “And when you look at advanced economies, Mr. President has said that he wants to see Nigeria having a $1 trillion economy, and this is the beginning of it.

    “For us to do it, we must do it in a way that is not only during the time of Mr. President.

    “Mr. President is only going to stay for likely eight years, and after eight years, there will be another government.

    “So, we want a law that will outlive anybody that is there, even us that we are making the law, at the end of the day, we are going to be the ones also that will have to follow what we have led.

    “So I think it’s not about who presents, it’s about what Nigerians will see as a true reflection of what it should be.”

    Musa’s counterpart in the House of Representatives, Abiodun Faleke, described the public hearings as a veritable platform for stakeholders to make their inputs for a balanced legislation.

    Faleke said: “The public have responded to us. We will now look at every detail to propose a bill; a bill that will now be passed into law, considered by the House, if the House agrees with all our suggestions.

    “When we finish and we lay a report and it is discussed on the floor or debated and passed, we will compare it with that of the Senate. Any areas of differences, we will harmonise.”

    Faleke said his Committee would scrutinise all the presentations by Nigerians with a view to bringing out the best in the overall all interest of Nigerians.

    Executive Director of the Peering Advocacy and Advancement Centre in Africa, Ezenwa Nwagwu, emphasised that the proposed tax reforms must be pursued through a non-partisan approach to achieve their intended objectives.

    Nwagwu stated that a stable and well-structured tax system would be of greater benefit to all Nigerians, regardless of political affiliations.

    Read Also: a chartered accountant said the Tax Reform Bills are designed to expand Nigeria’s tax base

    Expressing support for the proposed reforms, he described them as a step towards a fairer and more efficient tax system that would enhance revenue generation without placing undue burdens on businesses and individuals.

    Addressing the proposed changes to the VAT sharing formula, he acknowledged concerns raised by some stakeholders regarding the derivation principle.

    While this principle is expected to benefit states with higher economic activity, he noted that it might disadvantage less industrialised regions.

    However, he argued that the tax reforms would incentivise other regions to boost economic activity, create jobs and generate more VAT revenue.

    He also called for post-reform monitoring mechanisms to track progress, address challenges and ensure continuous improvement.

    Speaking further, Nwagwu urged the government to ensure transparency and public accountability in implementing the reforms to build trust and encourage compliance among taxpayers.

    The Tax Reform Bills, comprising the Nigeria Tax Bill, Nigeria Revenue Service (Establishment) Bill, Nigeria Tax Administration Bill and Joint Revenue Board (Establishment) Bill, were initiated by President Tinubu and transmitted to the National Assembly on October 3, 2024 for its consideration.

    The Nigeria Tax Bill (the Bill) consolidates the legal frameworks relating to taxation within the purview of the federal government, which were previously administered under separate tax laws, into a single piece of legislation.

    It proposes to repeal the Companies Income Tax Act, Personal Income Tax Act, Capital Gains Tax Act, Petroleum Profits Tax Act, Value Added Tax Act, and six other tax laws, as well as amend 13 additional tax laws.

    Some parts of the bills, especially those relating to the Value Added Tax (VAT) and the formula for sharing it by the three tiers of government, had generated much controversy at the level of the 36 state governors and regional groups.

    However, the contentious issues were later resolved with the governors proposing amendments.

    The Nigeria Governors’ Forum (NGF) at a January meeting in Abuja with the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, threw its weight behind the bills.

    The forum proposed an equitable sharing formula for Value-Added Tax as follows: 50% based on equality, 30% based on derivation and 20% based on population.

    The NGF agreed that “there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time to maintain economic stability.”

    Besides, the governors ruled out a terminal clause for the Tertiary Education Trust Fund, National Agency for Science and Engineering Infrastructure and National Information Technology Development Agency in the sharing of development levies in the bills, and supported the continuation of the legislative process at the National Assembly that will culminate in the eventual passage of the tax reform bills.

    They acknowledged the importance of modernising the tax system to enhance fiscal stability and align with global best practices.

  • Tax reform bills: Sharia council, FCT Imams, Yadudu reject inheritance law, VAT rise, others

    Tax reform bills: Sharia council, FCT Imams, Yadudu reject inheritance law, VAT rise, others

    The Supreme Council for Shariah in Nigeria, Committee of FCT Imams Initiative, Kano State Government and former Presidential Adviser Professor Auwalu Yadudu have raised concern about the proposed law on inheritance, saying it will infringe on the religious rights of Christians and Muslims.

    The stakeholders stated this on Wednesday during their various presentations at the House of Representatives Public Hearing on Tax Reform Bills convened by the House Committee on Finance at the National Assembly Complex, in Abuja.

    The four bills are: The Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, the Joint Revenue Board Bill, and the Nigeria Tax Bill, which have been passed for a second reading by both the Senate and the House of Representatives.

    In its presentation, the Sharia council represented by Professor Ahmed Bello Dogarawa, acknowledged the importance of tax reforms but strongly opposed the proposed inheritance tax, stating that it conflicts with Islamic law and religious practices.


    
He said: “While we appreciate efforts to streamline tax laws, we cannot support a provision that contradicts deeply held religious principles. Taxing inheritance in this manner would create unnecessary tension and legal challenges.” 

    The council also called for the modification of the clause on inheritance tax and called for the entire expunging of Section 4(3) Part 1, Chapter 2 of the Nigeria Tax Bill.


    
”The new clause should read as either of the following: “In this section, the reference to family income or however called, shall not affect the operation of distribution of the estate under the Personal Law of the deceased.”

    The council also raised concerns over removing tax exemptions for religious institutions, warning that it could hamper their ability to provide community services.

    “Any attempt to tax inheritance would be seen as an infringement on religious rights and could create legal disputes,” he said. 

    He added that if the federal government insists on maintaining inheritance tax, the bill should be amended to explicitly state that it does not apply to estates distributed under personal law (Sharia law, among others).

    Read Also: FG demands probe for killed  Nigerian footballer in Uganda

    The council said the term “derivation” in the bill was vague and ambiguous, saying that it must be properly defined. 

    Dogarawa said that derivation should be explicitly defined as the location where actual consumption takes place.

    In its presentation, the FCT imam committee represented by Dr Umar Aliyu, the Imam of Banex Mosque Abuja, said his association strongly opposed any form of taxation on religious institutions and faith-based organizations.

    He said religious institutions play a crucial role in community development and welfare; therefore, imposing taxes on mosques and religious centres would create financial hardships and discourage charitable activities.

    Like the Sharia council, the imams also opposed VAT increment but rather proposed a reduction of VAT rate from 7.5% to 5% or at best, the current rate of 7.5% should be sustained.

    The association also proposed that the clause which seeks to stop the funding of TETFund, NASENI and NITDA by 2030 should be expunged from the bills.

    The clerics also opposed the development levy, arguing that it would place unnecessary financial strain on religious institutions that are already playing a key role in supporting the needy.

    Representatives from the Kano State Government voiced their general support for tax reforms but cautioned that certain sections would undermine state autonomy. 

    “We support tax modernisation,” one official said, “but we must ensure that this process does not come at the expense of states’ constitutional rights and economic stability,” Mahmud Sagagi who made the presentation said.

    Yadudu, a professor of constitutional law, said the ‘supremacy clause’ and the repeated use of “notwithstanding” in the bills will undermine the supremacy of the Nigerian constitution. 

    “The act or the bill being proposed is given the supremacy status like the Constitution. Only the Nigerian Constitution has supremacy, and therefore if you were to enact any of these bills and you enact them on the basis that they are supreme over any other law which would contradict them, then that would be wrong, and that would be contrary to the Constitution,” he said.

    He also observed that it is constitutionally wrong for the National Assembly to create tax boards for states and local governments as proposed in the bills.

    Yadudu said the proposed Nigerian Revenue Service board should consist of representatives from the 36 states and the FCT to make it truly federal.

    He said: “In the boards that you have established, I think it is the tax administration, you are establishing a board, management board, giving the name National Revenue Service, but having members that are only ex-officials mainly with the chairman of the board and six representatives of geopolitical thoughts.


    
“I think this goes contrary to the federal character of this nation in that you either call it Federal Revenue Service Board, in which case you can have any number of ex-officials of your members or if you want to make it truly federal, then you should have each state represented on that board. My preference is that it will be federal.”

  • Tax Reform Bills will drive Nigeria toward $1trillion economy – Senate

    Tax Reform Bills will drive Nigeria toward $1trillion economy – Senate

    …Plans three-day retreat

    …bills now have national dimension, says Ningi

    The Senate has stated that the proposed Tax Reform Bills will play a crucial role in helping Nigeria achieve the $1 trillion economy goal set by President Bola Ahmed Tinubu’s administration.

    Chairman of the Senate Committee on Finance, Senator Sani Musa, made this known on Tuesday while addressing reporters in Abuja. 

    Read Also: FG unveils plan to tackle growing unsafe water crisis

    He revealed that the committee would soon hold a three-day retreat to review stakeholder memoranda submitted on the Bills.

    Meanwhile, Senator Abdul Ningi, Chairman of the Senate Committee on Sports, acknowledged that the Bills have taken on a national dimension. 

    Initially opposed to the reforms, Ningi noted that the intervention of state governors played a key role in facilitating the ongoing public hearing, allowing critical stakeholders to voice their opinions and contribute to the legislative process.

  • Northern union, 72 other Arewa groups back Tinubu’s Tax Reform Bills

    Northern union, 72 other Arewa groups back Tinubu’s Tax Reform Bills

    The Northern Union and 72 other Arewa groups have announced support for President Bola Ahmed Tinubu’s Tax Reform Bills.

    This endorsement comes on the heels of a Senate public hearing where stakeholders gathered to discuss the proposed legislation.

    According to the Northern Union, the Tax Reform Bills align with their organisation’s values of promoting economic growth, fairness, and simplicity.

    The President of the group, Alhaji Adamu Muazu Garuba, said the proposed legislation will streamline tax administration, reduce compliance costs, and promote investment in key sectors.

    Speaking on behalf of the groups after a public hearing in the Senate, Garuba commended the Senate Committee Chairman, Senator Sani Musa for his professional conduct throughout the hearing. 

    Garuba further praised Musa for displaying the highest level of accountability, neutrality and impartiality by ensuring that all Nigerians were heard.

    “The benefits of the Tax Reform Bills to the North are numerous. A simplified tax system will attract investments, create jobs, and stimulate economic growth,” Garuba said. 

    ” The reduction in compliance costs will ease the burden on taxpayers, enabling them to invest in their businesses and communities. Additionally, the increased revenue generated from the reforms will enable governments to fund critical infrastructure projects and social programs.

    “The Tax Reform Bills will also promote fairness and equity in the tax system, eliminating multiple taxation and reducing the tax burden on low-income earners.

    Read Also: Tax Reform Bills: Less than 30% of Nigerians pay tax, says Akpabio

    “This will promote social justice and reduce poverty in the region. Furthermore, the reforms will promote transparency and accountability in the tax system, building trust between governments and the people.”

    In particular, Garuba said that the Tax Reform Bills will have a profoundly positive impact on the North.

    He added: “A simplified tax system will attract investments, create jobs, and stimulate economic growth in the region. This, in turn, will lead to increased economic activity, improved living standards, and reduced poverty levels.

    “As the North is a significant contributor to Nigeria’s economy, the benefits of the Tax Reform Bills will be felt across the country. The reduction in compliance costs will also ease the burden on taxpayers in the North, enabling them to invest in their businesses and communities.

    “This will be particularly beneficial for small and medium-sized enterprises (SMEs), which are the backbone of the Northern economy. By reducing the tax burden on SMEs, the Tax Reform Bills will promote entrepreneurship, innovation, and job creation in the region.

    “The increased revenue generated from the reforms will also enable governments in the North to fund critical infrastructure projects and social programs.

    “This will help to address the region’s developmental challenges, such as inadequate healthcare, education, and transportation infrastructure. By investing in these critical areas, the North will be better equipped to unlock its economic potential and improve the lives of its people.”

    Garuba urged all northerners to support the Tax Reform Bills, emphasising that these reforms are in their best interest.

    He stated: “We urge all northerners to join us in supporting the Tax Reform Bills. These reforms are in our best interest and will promote economic growth, fairness, and simplicity.

    “We must work together to ensure that these reforms are passed into law and implemented effectively. We also call on our lawmakers to expedite the passage of the Tax Reform Bills.

    “We urge them to put aside their differences and work together to pass these critical reforms. The fate of our region and our people depends on it. Finally, we commend President Tinubu for his leadership and vision in proposing these reforms.”

  • Things to note before public hearing on tax reform bills

    Things to note before public hearing on tax reform bills

    • By Arabinrin Aderonke

    The Nigerian Senate and House of Representatives are poised to commence a 5-days public hearing on the Tax Reform Bills, scheduled for Monday, February 24, and Tuesday, February 25, 2025 at the Senate and from February 26 to Friday, February 28, 2025, at the House of Representatives.

    This Executive Bill, introduced by President Bola Ahmed Tinubu, aims to overhaul the nation’s tax system to enhance efficiency and bolster revenue generation.

    The reform process has been spearheaded by Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), and Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reform.

    Their collaborative efforts have been instrumental in demystifying the proposed changes and effectively communicating their benefits to the public.

    Engagement with stakeholders

    In the lead-up to the public hearing, Adedeji and Oyedele have engaged in extensive consultations with a diverse array of stakeholders.

    These include state governors, trade associations, youth groups, civil society organisations, lawmakers, journalists, media executives, etc. Such inclusive dialogue has been pivotal in fostering a broad-based understanding and support for the reforms.

    Legislative progress

    The Tax Reform Bills have successfully passed the requisite two readings in the National Assembly, paving the way for the forthcoming public hearing.

    Senator Sani Musa, Chairman of the Senate Committee on Finance, emphasised the importance of this phase, stating, “We intend to take on two of the bills on each day of the session for the press to be fully abreast with what we intend to do.”

    Components of the Tax Reform Bills

    The legislative package comprises four distinct bills:

    Nigeria Tax Bill: This bill seeks to harmonise existing tax laws into a unified framework, thereby simplifying the tax system and making it more accessible for taxpayers.

    Nigeria Tax Administration Bill: Aimed at streamlining tax administration processes, this bill focuses on enhancing efficiency and reducing bureaucratic hurdles for both taxpayers and authorities.

    Read Also: First Lady Oluremi Tinubu donates food items to vulnerable women in Borno

    Nigeria Revenue Service (NRS) Bill: This legislation proposes the establishment of the Nigeria Revenue Service, replacing the existing Federal Inland Revenue Service (FIRS). The NRS is envisioned to modernise the nation’s tax collection agency, leveraging advanced technologies to improve accountability and transparency.

    Joint Revenue Board Bill: This bill aims to establish a Joint Revenue Board to coordinate and oversee tax administration across federal, state, and local government levels, ensuring uniformity and collaboration in tax matters.

    Anticipated benefits amongst others

    If enacted, the Tax Reform Bills are expected to yield several benefits:

    Economic growth: The reforms aim to attract investment and stimulate economic activities by creating a more efficient and transparent tax system.

    Revenue Generation: The streamlined tax processes are projected to enhance compliance, thereby increasing government revenues.

    Equitable Resource Distribution: The reforms seek to address regional disparities by ensuring a fairer allocation of tax revenues among states.

    The public hearing represents a critical opportunity for citizens and organisations to voice their opinions and contribute to shaping a tax system that reflects the nation’s economic aspirations and social equity.

  • Reps fix February 28 for public hearing on Tax Reform Bills

    Reps fix February 28 for public hearing on Tax Reform Bills

    The House of Representatives has fixed February 28 to hold a public hearing on the four Tax Reform Bills recently passed for second reading in the House.

    Speaker Tajudeen Abbas, who announced this during yesterday’s plenary, said the House decided to constitute a special committee to handle the public hearing in view of its sensitive nature.

    The public hearing would have been handled by the House Committee on Finance, but the Speaker said a 36-man committee had been constituted to handle the assignment.

    The committee, to be headed by the Chairman of the House Committee on Finance, James Abiodun Faleke, will have the Deputy Chairman of the Finance Committee as the deputy.

    Read Also: South-West Govs to honour Adebanjo with grand funeral – Sanwo-Olu

    Leader of the Northern Caucus, Alhassan Ado Doguwa (APC, Kano), Leader of the Southern Caucus, Nicholas Mutu (PDP, Delta), as well as the six zonal caucus leaders – Sada Solo (Northwest), Ahmed Idris Wase (Northcentral), Mukthar Aliyu Betara (Northeast), Babajimi Benson (Southwest), Fred Agbedi (Southsouth) and Igariwey Iduma Enwo (Southeast) – are on the committee.

    The Tax Reform Bills include the Nigeria Tax Bill 2024, which aims to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.

    Others are: the Nigeria Revenue Service Establishment Bill, which is expected to repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service, as well as the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.

    The committee is expected to engage stakeholders in the nation’s tax system, including officials of the Presidential Committee on Tax Reform, the Federal Inland Revenue Service (FIRS), the Nigeria Governors’ Forum (BGF), civil society organisations (CSOs), among others.

  • House softens stance on Tax Reform Bills

    House softens stance on Tax Reform Bills

    • Proposals set for public hearing

    The House of Representatives has softened its stance on the Tax Reform Bills.

    Yesterday, after a three-hour generally positive debate by members, the Bills scaled second reading and passed for public hearing.

    This is unlike the situation when the Bills were sent by President Bola Ahmed Tinubu to the Green Chamber in October.

    Following opposition from a section of the ruling class, the House exploded in uproar over the Bills, forcing Speaker Abbas Tajudeen to dissolve the House into and Executive session after which all issues on the Bills were kept in ambiance to allow for consultations.

    But at the Senate, the Bills were quickly debated and moved to the public hearing stage.

    The Bills are the Nigeria Revenue Service (Establishment) Bill, the Nigeria Tax Bill, the Nigeria Tax Administration Bill, and the Joint Revenue Board (Establishment) Bill.

    The bills were consolidated into one at the House for a seamless debate.

    The proposed laws were read for the first time on October 8 but debate by the House was put on hold due to disagreement on the content of the bill, especially by Northern leaders and the Nigerian Governors’ Forum (NGF). 

    Although the House engaged government officials on the benefits of the bills, Speaker Tajudeen asked members to engage in wide consultations with their constituents to pave the way for a robust debate.

    Apart from some observations on certain areas of the bills that appeared not in tandem with some sections of the 1999  Constitution and a  few other clauses, members unanimously okayed the bills for a second reading.

    Minority Leader Kingsley Chinda said while opposition members supported the spirit behind the bills, some had issues with certain aspects.

    Chinda noted that the bills seek to rejig the nation’s tax system for effective revenue generation. He pointed out that for every law, there must be the spirit of the letters. 

    He said:  “We have all agreed that the spirit behind the four bills is good.

    ‘’But we have issues with some of the letters of the bills. Why we oppose some letters of the bills, we support the spirit and want to assure Nigerians that we will watch those letters and at the appropriate time, we will ensure that the letters are corrected in the interest of Nigerians. “

    He advocated a reduction in the Value Added Tax(VAT), saying ‘’It is possible to reduce tax, while efforts should be made to tidy up all areas of conflicts..’’

    Read Also: Wike vows compensation for affected structures in FCT

    House Leader Julius Ihonvbere thereafter set the tone for the debate by explaining that the bills were intended to overhaul the country’s outdated tax laws.

    Ihonvbere reassured the public that the reforms would benefit ordinary Nigerians without imposing tax burdens on the poor.

    While appreciating those who hold opposing views to the bills,  he said their views helped strengthen the bills. 

    The House leader charged members to “be part of history in reforming the tax system to promote revenue growth, increase employment and better the life of ordinary Nigerians.

    Minority Whip, Ali Isa commended   Speaker Abass for creating an opportunity for members to engage and consult widely on the contentious parts of the bills.

    Isa however expressed concern about clause 146 which encourages a gradual increase in VAT from 7.5 percent to 10 percent and later 15 percent.

    While advising the government to find ways of addressing the current economic hardship in the country, he warned that the proposed increase in VAT would cause more challenges for the citizens.

    He said the House must watch out for areas where Nigerians want improvement on the bills.

    Another contributor,  Bamidele Salam (PDP Osun) said reforms are not usually the easiest to accomplish because of their painful and disruptive effects.

    Salam, who heads the House Committee on Public Accounts,  noted that  Nigeria operates the most duplicative tax laws in the world. He added that the tax laws in the country have led to stunted growth of the economy and caused investors to shy away.

    He said whatever innovations the House was considering, the welfare of  Nigerians must be paramount.

    Deputy Chief Whip, Isiaka Ibrahim Ayokunle said the tax bills would when passed, harmonise all tax laws and levies in the country.

    He, however, said that while the laws provide penalties for defaulters, they should also provide penalties for their implementers.

    Ayokunle also advised that safety nets be provided for companies that may be operating at a loss.

    Sada Soli said while the bills would enhance efficiency,   there are several inconsistencies and challenges in them that the  House must deal with.

    These, he said, raise constitutional and jurisdictional concerns, especially section 141 which contradicts the provisions of the Constitution while also has overlapping functions with existing laws.

     He also pointed out that the laws lack interpretation clauses while the issue of VAT hike could overburden taxpayers.

    Gboyega Nasiru Isiaka, who said that “tax reform is one of the things that we promised Nigerians that we will do,’’ added that ‘’we need a reform of our tax system which is completely outdated.’’

    “ Our tax to GDP is the lowest in the entire Africa and we need to enhance our tax return. Our budget is low and the deficit is increasing. There should be so many underground economies. That we need to reach out to,” he added.

    Marian Onuoha said the bills seek to balance income generation by taxing the rich more.

    While speaking on the lack of an interpretation clause in three of the four bills,  Abubakar   Fulata said any law without an interpretation clause is blind and can be abused by those implementing it.