In a pivotal move on Thursday, March 13, the House of Representatives officially adopted the controversial Tax Reform Bill as a working document following a series of deliberations.
Despite facing significant opposition across the country, the bill has now been acknowledged as a critical framework for reforming Nigeria’s tax system.
Speaker Tajudeen Abbas, speaking during a committee session, highlighted the extensive discussions that led to the bill’s adoption, noting that it now reflects a collective consensus across various sectors. “This is the first time a report of this nature has received near unanimous approval, with all 36 states and the Federal Capital Territory having representation in the sub-committee,” Abbas remarked, praising the finance committee for their dedication.
The Finance Committee, chaired by Representative James Faleke, presented the revised report, which tackled contentious issues raised during earlier discussions. Notably, the committee endorsed maintaining the current 7.5% Value-Added Tax (VAT) rate, reinforcing the principle of consumption-based taxation.
The committee also recommended the repeal of the Federal Inland Revenue Service (FIRS) Act, proposing the establishment of the Nigeria Revenue Service to streamline the collection of federal revenues.
Faleke expressed optimism about the potential of the Nigeria Revenue Service to improve tax harmonization and administration across the nation.
He further indicated that significant modifications had been made to the bill, including the removal of some clauses, the retention of others, and the introduction of new provisions to enhance its effectiveness.
This latest move comes after Northern governors raised concerns and proposed conditions that had to be addressed before they could offer support to the reform.
The House’s adoption of the bill is seen as a crucial step toward modernizing Nigeria’s tax system, with hopes that it will foster a more efficient and equitable tax environment.
