The Nigerian Senate has passed the four tax reform bills introduced by President Bola Tinubu for second reading. The bills, which were transmitted to the National Assembly on October 3, aim to reform Nigeria’s tax administration and reduce the tax burden on citizens.
The proposed legislation includes the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. These bills seek to provide a clear and concise legal framework for all taxes in the country, reduce disputes, and strengthen Nigeria’s fiscal institutions.
The Senate’s decision to pass the bills for second reading was met with some opposition, particularly from Senator Ali Ndume, who expressed reservations about the timing and certain provisions of the bill. He suggested that the reforms could be passed more quickly if they were withdrawn and reintroduced with necessary amendments.
Despite the opposition, the Chief Whip emphasized the importance of advancing the bill to the public hearing stage, where it can undergo thorough examination. The Senate President, Godswill Akpabio, referred the bills to the Committee on Finance, which is expected to report back within six weeks.
The tax reform bills have generated controversy, with the Northern governors and other stakeholders kicking against the reforms. However, the Presidency has explained that the bills are not targeted at any particular region but aim to develop the country.
The passage of the bills for second reading marks a significant step towards reforming Nigeria’s tax administration. The bills will now undergo further scrutiny and public hearing before they can be passed into law
