The proposed tax reform bill has passed for second reading in the House of Representatives.
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 four tax reform bills, the Joint Revenue Board of Nigeria, Establishment, Bill 2024, the Nigeria Revenue Service (Establishment) Bill 2024, the Nigeria Tax Administration Bill 2024, and the Nigeria Tax Bill 2024 – are meant to overhaul the Nigerian tax system.
Leading the debate on Wednesday, the Majority Leader, Julius Ihonvbere, commented on the concerns raised about the bills, noting that the Nigerian Governors Forum, NGF, has resolved the issues.
Ihonvbere stated that the House had held several meetings with different caucuses to address their concerns.
He also highlighted some of the benefits of the bills, including tax exemptions for low-income earners.
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.
The bills were later referred to the House Committee on Finance for further legislative action.
The tax reform bills, drafted by the Presidential Committee on Tax Reforms and Fiscal Policy, aim to overhaul the existing tax laws in Nigeria.
However, the bills have faced stiff opposition, mainly from the northern parts of the country, particularly from northern governors who have described them as “anti-North.”
