Reps Pass Tax Reform Bills for Second Reading

The House of Representatives has passed for the second reading the four Tax Reform Bills submitted to the National Assembly by President Bola Tinubu.

These bills, including the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill, aim to overhaul Nigeria’s tax system to ensure efficiency, transparency, and improved revenue collection.

The tax reform bills scaled the second reading after five months of consultations among lawmakers, during which critical concerns were addressed to achieve consensus on contentious provisions.

During deliberations, legislators emphasized that the proposed reforms would harmonize tax administration, eliminate multiple taxation, and create a structured framework for tax dispute resolution. The bills also propose the establishment of an ombudsman system to expedite tax-related conflicts between taxpayers and the government.

The lawmakers noted that the reforms are aimed at expanding the tax base by integrating more businesses and individuals into the formal tax system.

They also aim to ensure uniform tax policies across different levels of government to prevent arbitrary levies, enhance tax collection efficiency, reduce revenue leakages, and improve government earnings. Additionally, the reforms are expected to promote ease of doing business by simplifying tax compliance processes for businesses.

While supporting the bills, lawmakers advocated for the prudent application of tax revenues by all tiers of government. Some legislators raised concerns over revenue mismanagement and lack of accountability in tax utilization, urging the executive to ensure that increased tax revenue translates into improved infrastructure, social services, and economic development.

With the second reading secured, the bills will now proceed to the committee stage, where lawmakers will fine-tune provisions before a final vote. Stakeholder engagements, including input from tax experts, business leaders, and government agencies, are expected to shape the final versions of the bills before they are passed into law.