Emmanuel OchayiThe House of Representatives has passed the four Tax Reform Bills, months after facing strong opposition and intense debates. The bills, sent by President Bola Tinubu to the National Assembly in October 2024, were read for the third time during Tuesday’s plenary session.
The House had previously adopted a report containing several amendments to the bills, especially in disputed areas. The bills will now proceed to the Senate for concurrence before being sent to the president for his final approval.
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Tax Reform Bills Aim to Improve Revenue and Tax Collection
The Tax Reform Bills are designed to boost government revenue, simplify tax collection, and revise tax rates across different industries. The first bill seeks to regulate the assessment, collection, and accounting of revenue at all levels of government, defining the powers and responsibilities of tax authorities.
The second bill proposes replacing the Federal Inland Revenue Service with a new body, the Nigeria Revenue Service. This agency will oversee tax assessment, collection, and financial reporting for the federal government.
Another bill focuses on setting up a Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombud. These bodies will help coordinate revenue administration and settle disputes related to taxation.
The final bill aims to streamline tax laws by repealing certain taxation acts and consolidating the legal framework for income and transaction taxation.
Next Steps for the Tax Reform Bills
With the House of Representatives passing the bills, attention now shifts to the Senate. If the Senate approves them, they will be sent to President Tinubu for his signature.
The passage of these bills marks a significant step in the government’s plan to modernise taxation and improve revenue generation. However, their impact on businesses and taxpayers will depend on how they are implemented.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
