Reps Pass Tax Reform Bills For Second Reading

The tax reform legislation were approved for a second reading by the House of Representatives on Wednesday, February 12.

Prior to starting the discussion of the general principles, the House had already combined the four tax reform legislation that President Bola Ahmed Tinubu had delivered to the House the previous year into a single bill.

After the Speaker, Abbas Tajudeen, gave his permission, the House Leader, Prof. Julius Ihonvbere, moved to consolidate the bills.

The bills consolidated include: “A Bill For an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States and Local Governments; Prescribe the Powers and Functions of Tax Authorities, and for Related Matters (HB.1756); A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007 and Enact the Nigeria Revenue Service (Establishment) Bill to Establish Nigeria Revenue Service, charged with Powers of Assessment, Collection of, and Accounting for Revenue Accruable to the Government of the Federation and for Related Matters (HB.1757).

Others include: “A Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombud, for the Harmonisation, Coordination and Settlement of Disputes arising from Revenue
Administration in Nigeria and for Related Matters (HB.1758) and A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks Relating to Taxation and Enact the Nigeria Tax Act to Provide For Taxation of Income, Transactions and Instruments, and for Related Matters (HB.1759).

The House Leader, Prof Julius Ihonvbere, led the debate on the combined tax reform, emphasizing the importance of reforming the country’s tax reform, which he termed as outdated.

Ihonvbere, remarking on the broad principles of the laws, complimented the Nigerian Governors’ Forum for their substantial contributions in retooling the VAT distribution formula, which served to alleviate initial worries about the tax reform bills.

He stated that the law, which seeks to revamp the tax reform system, will empower citizens and promote inclusive growth.

According to Ihonvbere, if the tax reforms are approved, Nigerians will gain from the harmonisation of various taxes, the reduction of PAYE tax, the elimination of VAT on food, healthcare, and education, as well as incentives for low-income workers.

The majority of the parliamentarians who participated in the debate on the measures’ broad principles spoke in favor of passing the bill for a second reading.

Following a lengthy discussion, Speaker Abbas Tajudeen put the merged legislation to a voice vote, and they were overwhelmingly approved for a second reading.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli