The House of Representatives on Wednesday, Feb. 12, passed the tax reform bills for a second reading.
The House had earlier consolidated the four tax reform bills sent to the House by President Bola Ahmed Tinubu last year into one before beginning the debate on the general principles.
The consolidation of the bills followed a motion by the House Leader, Prof Julius Ihonvbere, following the leave granted by the Speaker, Abbas Tajudeen.
The bills consolidated include: “A Bill For an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States and Local Governments; Prescribe the Powers and Functions of Tax Authorities, and for Related Matters (HB.1756); A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007 and Enact the Nigeria Revenue Service (Establishment) Bill to Establish Nigeria Revenue Service, charged with Powers of Assessment, Collection of, and Accounting for Revenue Accruable to the Government of the Federation and for Related Matters (HB.1757).
Others include: “A Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombud, for the Harmonisation, Coordination and Settlement of Disputes arising from Revenue
Administration in Nigeria and for Related Matters (HB.1758) and A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks Relating to Taxation and Enact the Nigeria Tax Act to Provide For Taxation of Income, Transactions and Instruments, and for Related Matters (HB.1759).
The House Leader, Prof Julius Ihonvbere, led the lead debate on the consolidated tax reform, stressing the necessity of overhauling the country’s tax reform which he described as obsolete.
Ihonvbere, while speaking on the general principles of the bills said the legislations, thanked the Nigerian Governors’ Forum for their valuable inputs in retooling the aspect of the VAT sharing formula which helped in dousing the earlier concerns that trailed the tax reform bills.
He said the bill which aims to modernise the tax reform system will empower citizens and enhance inclusive growth.
Ihonvbere said the tax reforms will benefit Nigerians if passed as it proposes harmonisation of multiple taxes, reduced PAYE tax, provided zero VAT on food, healthcare, education etc and also provided incentives for low income employees.
In their contributions to the debate on the general principles of the bills, the majority of the lawmakers spoke in support of passage of the bill for second reading.
After an extensive deliberation, the consolidated bills were overwhelmingly passed for a second reading after it was put to a voice vote by the Speaker, Abbas Tajudeen.
