The House of Representatives has passed President Bola Tinubu’s proposed tax reform bills for a second reading following extensive deliberations by lawmakers on Wednesday.
The four bills—Nigeria Tax Bill, Tax Administration Bill, Joint Revenue Board Establishment Bill, and Nigeria Revenue Service Bill—were consolidated and debated before being approved for further legislative consideration.
Key Provisions of the Bills:
- Establishment of a modernized Nigeria Revenue Service to replace the Federal Inland Revenue Service (FIRS).
- Creation of a Joint Revenue Board and Tax Appeal Tribunal to harmonize tax administration.
- Harmonization of multiple taxes, reduction in PAYE tax, and exemption of VAT on food, healthcare, and education.
- Introduction of incentives for low-income earners to ease financial burdens.
Lawmakers’ Reactions:
House Leader Prof. Julius Ihonvbere emphasized that Nigeria’s tax system is outdated and needs urgent reform to boost economic growth and citizen empowerment. He acknowledged the Nigerian Governors’ Forum for their contributions in refining the VAT sharing formula, which previously raised concerns.
Rep. Bamidele Salam (PDP, Osun) supported the bills, stating they would increase resources for state governments to drive development. However, he stressed the need to prioritize citizens’ welfare in the reform process.
Rep. Sada Soli raised concerns about inconsistencies and ambiguities in some clauses, warning that vague provisions could lead to abuse and misinterpretation.
Rep. Ademorin Kuye highlighted the importance of generating revenue to address Nigeria’s infrastructure deficit, urging full support for the reforms.
Other lawmakers, including George Odinobi, Makki Yalleman, Cyril Hart, Igariwey Iduma, and Mariam Onuoha, also expressed support for the bills.
After a voice vote, Speaker Abbas Tajudeen declared the bills passed for a second reading, moving them closer to becoming law.
