Senate Passes Tax Reform Bills For Second Reading

The Senate has passed four key tax reform bills to the next legislative stage, passing through a second reading on Thursday via voice votes.

President Bola Tinubu had submitted these bills to the National Assembly on October 3, aiming to introduce comprehensive tax reforms.

However, the proposals sparked controversy, with Northern governors and other stakeholders voicing concerns.

In response, the Presidency clarified that the reforms were not region-specific but intended to support national development.

Among the bills passed is a proposal to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombud.

This legislation seeks to streamline revenue administration, resolve disputes, and ensure better coordination in Nigeria’s tax system.

Lawmakers debated the general principles of the tax reform package during the session, which followed a closed-door meeting.

The reforms are based on recommendations from the Taiwo Oyedele-led Tax Reforms Committee, submitted on September 3, 2024.

While many senators recognized the reforms as critical to modernizing Nigeria’s tax system and easing the burden on citizens, some expressed concerns.

Senator Ali Ndume criticized the timing of the proposals and certain provisions, suggesting they should be revised before being reintroduced.

The Chief Whip opposed delaying the process, stressing the importance of advancing the bills to public hearings.

The four bills under consideration include:

1. Nigeria Tax Bill 2024: Establishes a fiscal framework for taxation.
2. Tax Administration Bill: Provides a legal framework to reduce tax disputes.
3. Nigeria Revenue Service Establishment Bill: Replaces the Federal Inland Revenue Service (FIRS) with a new Nigeria Revenue Service.
4. Joint Revenue Board Establishment Bill: Creates a tax tribunal and tax ombudsman.

President Tinubu emphasized that the reforms aim to strengthen Nigeria’s fiscal institutions and align them with broader development objectives.

Despite the debates, the bills will now move to public hearings for further scrutiny and input from stakeholders.

KanyiDaily recalls that President Bola Tinubu recently appointed Jamiu Abiola as the Senior Special Assistant on Linguistics and Foreign Affairs.