JUST IN: House of Reps Passes Tax Reform Bills for Second Reading

The House of Representatives has passed four tax reform bills for a second reading after an extensive debate lasting over four hours. The bills, proposed by President Bola Tinubu, aim to restructure Nigeria’s tax system and have sparked significant discussion among lawmakers.

The legislation includes the Joint Revenue Board of Nigeria (Establishment) Bill 2024, the Nigeria Revenue Service (Establishment) Bill 2024, the Nigeria Tax Administration Bill 2024, and the Nigeria Tax Bill 2024. These bills, drafted by the Presidential Committee on Tax Reforms and Fiscal Policy, were transmitted to the National Assembly last year and are designed to modernize and streamline tax administration in the country.

During the debate, Majority Leader Julius Ihonvbere addressed various concerns, noting that extensive consultations had taken place, including discussions with the Nigerian Governors’ Forum (NGF). He emphasized that the bills include provisions such as tax exemptions for low-income earners.

Following the deliberations, Speaker Abbas Tajudeen called for a vote, leading to the bills’ approval for a second reading. They have now been referred to the House Committee on Finance for further legislative review.

Despite their progress in the House, the tax reform bills have faced opposition, particularly from northern governors who argue that the proposed changes are unfavorable to their region. Some critics, including Borno State Governor Babagana Zulum, claim the reforms would disproportionately benefit Lagos State. The debate has intensified into a broader North-South divide, especially concerning the Value Added Tax (VAT) revenue-sharing formula.

The National Economic Council (NEC), led by Vice President Kashim Shettima, previously advised President Tinubu to withdraw the bills for further consultation. However, the president has insisted that concerns should be addressed through the legislative process. The Nigerian Governors’ Forum has expressed conditional support, provided certain amendments are made.