The Senate on Thursday passed the tax reform bills for second reading.
The bills were forwarded by President Bola Tinubu in October 2024.
The four tax bills sent to the National Assembly include the Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a legal framework for all taxes in the country and reduce disputes.
Others are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service; and the Joint Revenue Board Establishment Bill which will create a tax tribunal and a tax ombudsman.
The passage of the bills followed a debate among the lawmakers after which it was referred to the Committee on Finance, which was asked to revert in not more than six weeks.
Before the debate, the lawmakers had Earlier, lawmakers went into a closed-door session that lasted for about an hour.
After the session, the Senate Leader, Opeyemi Bamidele led the debate on the bill.
On their return from the executive session, the Senate Leader, Opeyemi Bamidele (APC, Ekiti Central), led the debate on the bill.
He described the bills as a significant move to overhaul the country’s tax system, explaining that the bills aim to simplify the tax landscape, reduce the burden on small businesses, and streamline how taxes are collected.
“In broad terms, the four bills seek to ensure uniformity in tax revenue administration in Nigeria in accordance with the provisions of the Constitution, eliminate the incidence of double taxation across the country, deploy taxation as a tool to encourage private sector investments in critical industries and boost individual disposal incomes through targeted tax exemptions as captured in the various Bills.
“In the area of tax exemptions, there is a proposal to exempt those whose salaries are not more than the minimum wage from P.A.YE deductions while small businesses with an annual turnover of N50,000,000 or less are equally exempted from payment of taxes. Similarly, there is a proposed huge reduction in company income tax from the current 30% to 25% by 2026, as part of a deliberate attempt to curtail the incidence of double taxation and multiplicity of taxes and levies,” Bamidele added.
While the bills received the support of some lawmakers, they were opposed by Senator Ali Ndume who requested that the bills be stepped down for further consultation.
“Generally, the bill is good, but I have issues with the timing and most importantly issues surrounding derivation and VAT,” he said.
Following the debate, it was put to voice vote and Senate President, Godswill Akpabio ruled in favour of the ayes.
Earlier, members of the president’s economic team led by the Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele; alongside the Chairman, Federal Inland Revenue Tax, Zacchaeus Adedeji; and the Director-General, Budget Office, Tanimu Yakubu; were allowed into the plenary to explain the bills to the lawmakers.
