On Thursday, the House of Representatives deliberated on and adopted four tax reform bills.
The bills were passed following a thorough clause-by-clause review and endorsement by the Committee of the Whole, led by Speaker Abbas Tajudeen.
With this approval, the bills are now scheduled for a third reading on the next legislative day.
According to a report from Daily Trust, contentious clauses that had previously caused tension were resolved by the committee overseeing the reports, facilitating a smooth consideration and adoption process.
Among the key clauses approved was the VAT distribution formula, which allocates funds based on 50% equality, 20% population, and 30% consumption, as previously proposed by the Nigerian Governors’ Forum (NGF).
The House rejected the suggestion for an incremental VAT rate increase and unanimously agreed to maintain the current rate of 7.5%.
Additionally, the House removed the controversial term “ecclesiastical” from one clause and replaced it with “religious”.
The clause ensuring ongoing funding for TETFUND, NASENI, and NITDA from the development levies fund was also adopted.
Furthermore, the contentious clause regarding inheritance tax was modified, stating that inheritance received prior to dissolution cannot be taxed.
The reports reviewed and adopted by the House encompass the following:
– 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 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 the Nigeria Revenue Service, with powers for the assessment, collection, and accounting of revenue due to the government of the Federation, and related matters (HB.1757).
– 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 resolution of disputes arising from revenue administration in Nigeria, and related matters (HB.1758).
– A Bill for an Act to repeal certain taxation acts and consolidate the legal frameworks related to taxation, enacting the Nigeria Tax Act to govern taxation of income, transactions, and instruments, and related matters (HB.1759).
