Tension Rises In Abuja As House Of Reps Fast-Tracks Divisive Tax Reform Bills

The House of Representatives, on Wednesday, advanced the contentious Tax Reform Bills to a second reading following a vigorous debate among lawmakers over the core principles of the proposed legislation.....KINDLY READ THE FULL STORY HERE▶

Prior to the debate, the House consolidated four separate tax reform bills, initially submitted by President Bola Ahmed Tinubu last year, into a single document. This merger was initiated through a motion by House Leader, Prof. Julius Ihonvbere, and approved by Speaker Abbas Tajudeen.

The unified bills include:

1. A Bill for an Act to Provide for the Assessment, Collection, and Accounting of Revenue Accruing to the Federation, Federal, State, and Local Governments; Prescribe the Powers and Functions of Tax Authorities, and for Related Matters (HB.1756).
2. 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, establishing the Nigeria Revenue Service with the authority to assess, collect, and account for government revenue (HB.1757).
3. A Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombud, for Harmonization, Coordination, and Dispute Resolution in Revenue Administration (HB.1758).
4. A Bill for an Act to Repeal Certain Taxation Acts, Consolidate Legal Frameworks, and Enact the Nigeria Tax Act to Govern Income, Transaction, and Instrument Taxation (HB.1759).

Leading the debate, Prof. Ihonvbere stressed the urgency of overhauling Nigeria’s outdated tax system, highlighting the need for modernization to foster economic growth and empower citizens.

He acknowledged the Nigerian Governors’ Forum for their critical input, particularly in adjusting the VAT sharing formula, which addressed earlier concerns tied to the reforms.

Ihonvbere emphasized that the proposed reforms aim to simplify the tax structure, harmonize various taxes, reduce PAYE burdens, introduce zero VAT on essentials like food, healthcare, and education, and offer incentives for low-income earners. If passed, these changes are expected to deliver broad economic benefits across the nation.