The House of Representatives has passed four significant tax reform bills for second reading, marking an important step toward overhauling Nigeria’s tax system. The bills, submitted by President Bola Tinubu, include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. These proposed reforms aim to enhance the efficiency, transparency, and effectiveness of tax collection across the country.
The passage of these bills follows five months of consultations among lawmakers, which allowed them to address various concerns and achieve consensus on some of the more contentious aspects. Key objectives of the proposed reforms include harmonizing tax administration, eliminating multiple taxation, and creating a more structured framework for resolving tax disputes. The bills also suggest the establishment of an ombudsman system to help expedite tax-related conflicts between taxpayers and the government.
One of the major impacts expected from the reforms is the expansion of Nigeria’s tax base, bringing more businesses and individuals into the formal tax system. The reforms also aim to establish uniform tax policies across all levels of government to prevent arbitrary levies, improve tax collection efficiency, and reduce revenue leakages. Additionally, the reforms seek to simplify tax compliance processes, ultimately making it easier for businesses to operate in Nigeria.
While lawmakers have shown broad support for the reforms, some have raised concerns regarding the potential mismanagement of the increased revenue. Legislators called for transparent and accountable use of tax revenues to ensure that the funds contribute to infrastructure development, social services, and overall economic progress. The proposed reforms, they emphasized, must translate into tangible improvements for the Nigerian populace.
Having passed the second reading, the tax reform bills will now move to the committee stage, where further revisions will be made before the final vote. The legislative process will involve continued engagement with stakeholders, including tax experts, business leaders, and government agencies, to ensure the final versions of the bills reflect a balanced approach to tax policy.
SOURCE: nairametrics