Tax reform bills scale second reading
The Senate on Thursday passed four tax reform bills for a second reading through voice votes.
The bills, transmitted to the National Assembly by President Bola Tinubu on October 3, include proposals to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman. These bills are part of Tinubu’s comprehensive tax reform initiative aimed at harmonizing, coordinating, and resolving disputes within Nigeria’s revenue administration.
During the session, lawmakers debated the general principles of the bills. Earlier, the Senate had held a closed-door session to review the bills, which were sent by the president following recommendations from the Taiwo Oyedele-led Tax Reforms Committee.
While the reforms were largely acknowledged as necessary for overhauling Nigeria’s tax system and alleviating the tax burden on citizens, Senator Ali Ndume expressed concerns about the timing and certain provisions of the bills. He suggested that with amendments, the bills could be passed swiftly if withdrawn and reintroduced.
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However, the Chief Whip opposed this view, stressing the importance of advancing the bills to the public hearing stage for a thorough review, followed by clause-by-clause consideration.
Senator Ndume, the sole dissenting voice, emphasized that while tax reforms are essential, the timing was not ideal. He highlighted the need for consultations with governors, traditional rulers, and the National Economic Council (NEC) before moving forward. Ndume also pointed to concerns over issues like VAT and derivation, suggesting that the bill might need constitutional amendments to address these properly.
The four tax bills introduced by President Tinubu include: the Nigeria Tax Bill 2024, which provides the fiscal framework for taxation; the Tax Administration Bill, which clarifies the legal framework for taxes and reduces disputes; the Nigeria Revenue Service Establishment Bill, which seeks to replace the Federal Inland Revenue Service (FIRS) with a new agency; and the Joint Revenue Board Establishment Bill, which aims to create a tax tribunal and tax ombudsman.
The president has stated that these reforms will strengthen Nigeria’s fiscal institutions and support his administration’s broader development objectives.
Proofreading by Uchechi Ojo, Sub-editor at NeptunePrime.
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