House of Reps Approves Tinubu’s Tax Reform Bills

Tinubu’s Tax Reform Bills Get House of Reps Approval

The Nigerian House of Representatives has approved four tax reform bills proposed by President Bola Tinubu. These bills aim to overhaul the country’s tax system to enhance revenue generation and fiscal efficiency.

The approved bills are:

1. Nigeria Revenue Service (Establishment) Bill
2. Nigeria Tax Bill
3. Nigeria Tax Administration Bill
4. Joint Revenue Board (Establishment) Bill

These bills were initially presented to the National Assembly on October 8, 2024. After months of deliberations and revisions, the House adopted the bills following a detailed clause-by-clause review.

Key amendments made during the review include:

• Value-Added Tax (VAT): The House retained the existing VAT rate of 7.5%, rejecting proposals to increase it to 12.5%. Additionally, the VAT distribution formula was adjusted to allocate 55% to states and 35% to local governments, with 50% of VAT revenue distributed equally, 20% based on population, and 30% based on consumption.
• Terminology Adjustment: The term “ecclesiastical” was replaced with “religious” in the Nigeria Tax Bill to ensure inclusivity.

The bills now await approval from the Senate and, upon concurrence, will be forwarded to President Tinubu for assent before becoming law.