Tinubu Upholds Legislative Process For Tax Reform Bills

In response to recommendations from the National Economic Council (NEC), President Bola Tinubu has affirmed his commitment to a thorough legislative review of proposed tax reform bills currently before the National Assembly.

Despite the NEC’s suggestion to withdraw the bills for additional consultation, President Tinubu encouraged the legislative process to continue, allowing for input from stakeholders during public hearings.

Tinubu applauded the NEC, particularly Vice President Kashim Shettima and state governors, for their constructive feedback.

He emphasized that the legislative process will enable stakeholders to provide insights and address any concerns while preserving the integrity of the reform agenda.

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According to the statement issued to newsmen, the President’s stance aligns with his initial goal when he established the Presidential Committee on Tax and Fiscal Policy Reform in August 2023: to boost Nigeria’s economic productivity and create a more favorable business environment.

The tax reform bills aim to modernize Nigeria’s tax system.

It also target issues like multiple taxation and administrative inefficiencies.

Highlights of the bills include:

1. Nigeria Tax Bill- Aims to eliminate multiple taxation and simplify tax obligations.

2. Nigeria Tax Administration Bill (NTAB)- Proposes harmonization of tax processes across all government levels.
3. Nigeria Revenue Service (Establishment) Bill – Seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS).
4. Joint Revenue Board Establishment Bill – Proposes a new Joint Revenue Board to improve coordination among tax authorities.

The overarching goal of these reforms is to integrate federal, state, and local tax systems, reducing redundancies and aligning Nigeria’s tax framework with global standards.

Under current regulations, taxes such as Company Income Tax (CIT), Personal Income Tax (PIT), and Value-Added Tax (VAT) are governed by separate frameworks, leading to administrative fragmentation.

The proposed bills aim to streamline these into a unified structure, enhancing efficiency and revenue collection.

President Tinubu reiterated his commitment to Nigeria’s economic development agenda, welcoming continuous consultation with the NEC and other stakeholders.