The House of Representatives has entered into a closed-door session to deliberate on the Tax Reform Bills proposed by President Bola Tinubu.
The ongoing meeting is designed to foster a consensus among lawmakers as they prepare for the upcoming debate on the bills. The session is crucial in addressing any concerns or opposition that may arise during the discussion of the proposed reforms.
A lawmaker from the All Progressives Congress (APC) revealed that the closed-door session is intended to ease tensions and encourage support for the bills ahead of the formal debate. While not all lawmakers are fully convinced about the content of the bills, there is a general recognition that the government’s intent is to improve the nation’s economy. The aim of the session is to garner enough backing for the tax reforms, which are viewed as pivotal to strengthening Nigeria’s fiscal policies.
The Tax Reform Bills, transmitted to the National Assembly on September 3, 2024, are part of the government’s ongoing effort to overhaul the country’s tax system. These proposed reforms are based on the recommendations of the Taiwo Oyedele-led tax reforms committee and are designed to modernize and simplify Nigeria’s tax structure.
The four key bills under discussion include the Nigeria Tax Bill 2024, which sets the fiscal framework for taxation in the country. This bill outlines the broader principles and rules governing tax collection and administration. Another crucial bill is the Tax Administration Bill, which aims to streamline the legal framework for tax collection, reduce disputes, and ensure greater efficiency in tax administration.
Additionally, the Nigeria Revenue Service Establishment Bill seeks to repeal the existing Federal Inland Revenue Service (FIRS) Act and replace it with the Nigeria Revenue Service, a new body that would take on a more comprehensive role in managing the country’s revenue collection. The Joint Revenue Board Establishment Bill is also part of the package, and it proposes the creation of a tax tribunal and a tax ombudsman, both of which would provide greater accountability and resolve tax-related disputes.
These bills are considered critical for improving Nigeria’s tax system, increasing revenue generation, and ensuring a more transparent and efficient approach to taxation. However, lawmakers’ deliberations are expected to focus on the finer details of the proposed changes, with the aim of ensuring that the reforms align with the best interests of the economy and the welfare of Nigerian citizens. The outcome of these discussions will shape the direction of the country’s tax policies for years to come.
