The tax reform bills have passed second reading in the House of Representatives after an extensive debate on Wednesday.
The House also consolidated the four tax bills following a motion by the House Leader, Julius Ihonvbere, during plenary.
The bills had initially faced stiff opposition, leading to suspension of debate on them.
The House, however, resumed debate on the bills, following consultations largely led by the northern governor’s forum.
When the debate resumed, lawmakers agreed and voted that the bills should scale second reading and proceed to public hearing where the various clauses of concerns will be thoroughly reviewed before the bills would be passed.
While some lawmakers praised the bills as essential for boosting federal revenue and improving the ease of doing business, others raised serious concerns.
Among the most contentious proposals is the gradual increase in Value Added Tax (VAT).
A cross-section of lawmakers called for a significant reduction in the proposed VAT rate, warning that an increase would exacerbate hardship and drive up the cost of living.
Rep Ali Isa, representing Balanga/Billiri Federal Constituency in Gombe State, criticised the proposed VAT hike, noting that increasing it from the current 7.5 per cent would place undue burden on citizens. He also argued that the introduction of a development levy would further strain the populace.
Another contentious issue was the extensive discretionary powers granted to the president under the proposed legislation.
Hassan Hussein, representing Nasarawa Federal Constituency, expressed concern that such powers could be subject to abuse, calling for amendments to provide checks and balances.
Lawmakers also sought further clarification on the administration of Company Income Tax and Personal Income Tax, with several members insisting on the need for greater transparency and accountability in their implementation.
After the Bills were read for the second time, Tajudeen Abbas the speaker of the House referred them to the committee of Finance on for further legislative action.
