Following a comprehensive clause-by-clause examination before the Committee of the Whole, which was chaired by Speaker Abbas Tajudeen, the House of Representatives discussed and approved four major tax reform bills on Thursday.
The legislation are now scheduled for a third reading on the following legislative day prior to final passage, as was understood after the approval was obtained.
The majority of the controversial clauses that had previously generated discussion were settled by the committee in charge of the reports, according to Daily Trust, guaranteeing a seamless adoption procedure.
The Value Added Tax (VAT) distribution formula, which was first proposed by the Nigerian Governors’ Forum (NGF), was one of the important provisions that were taken into consideration and implemented. It now has a structure of 50% based on equality, 20% on population, and 30% on consumption.
Additionally, the House rejected the plan to raise VAT rates gradually, choosing to keep them at the current 7.5% rate.
In order to avoid controversy, MPs also decided to substitute the word “religious” for “ecclesiastical” in one of the sentences.
The granting of ongoing funding through development levies for organizations like TETFUND, NASENI, and NITDA was another crucial move.
Additionally, the controversial inheritance tax language was changed to make it clear that inheritance received prior to divorce is not subject to taxes.
A Bill for an Act to Provide for the Assessment, Collection, and Accounting of Revenue Accruing to the Federation, Federal, State, and Local Governments; Prescription of the Powers and Functions of Tax Authorities, and for Related Matters (HB.1756) is one of the tax reform legislation that the House has approved.
2. The Nigeria Revenue Service (Establishment) Bill to Establish the Nigeria Revenue Service, Charged with the Powers of Assessment, Collection, and Accounting for Revenue Accruable to the Government of the Federation, and for Related Matters (HB.1757) to repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007 and enact the Nigeria Revenue Service (Establishment) Bill.
3. A bill for an act to create the Office of the Tax Ombud, the Tax Appeal Tribunal, and the Joint Revenue Board for the purpose of resolving disputes arising from Nigeria’s revenue administration and for related purposes (HB.1758).
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4. A Bill for an Act to Enact the Nigeria Tax Act to Provide for the Taxation of Income, Transactions, and Instruments, and to Consolidate the Legal Frameworks Concerning Taxation, Repeal Certain Tax Acts, and Address Related Matters (HB.1759).
