The House of Representatives on Thursday adopted the Tax Reform Bill as a working document, marking a significant step in Nigeria’s ongoing tax reform efforts.
Following deliberations at the Committee of the Whole, Speaker Abbas Tajudeen announced the adoption of the bill, commending the Committee on Finance for its work. He emphasized that the report reflects the collective stance of all 36 states and the Federal Capital Territory.
“This is the first time such a report is receiving almost unanimous approval,” Tajudeen stated.
Presenting the report, Chairman of the Finance Committee, James Faleke, noted that contentious areas had been adequately addressed. He clarified that the bill retains the current Value Added Tax (VAT) rate at 7.5% and ensures VAT remains consumption-based.
A key highlight of the bill is the recommendation to repeal the Federal Inland Revenue Service (FIRS) and replace it with the Nigeria Revenue Service (NRS). The proposed NRS would be responsible for collecting federal revenue, a move Faleke believes will improve tax harmonization and administration.
The tax reform initiative follows President Bola Tinubu’s submission of four reform bills to the National Assembly on October 3, 2024. The reforms aim to streamline tax policies and enhance revenue generation for the federal government.
The bill’s adoption sets the stage for further legislative processes before its final passage into law.
House of Representatives Adopts Tinubu’s Tax Reform Bill, Proposes Nigeria Revenue Service
Nigeria’s House of Representatives has adopted Tinubu’s Tax Reform Bill as a working document, signaling a major shift in the country’s tax administration
