House of Reps passes Tax Reforms Bill

The House of Representatives has passed four major tax reform bills transmitted by President Bola Tinubu, despite opposition from some northern lawmakers.

The bills, which aim to overhaul Nigeria’s tax administration, were passed on the third reading following a motion by House Leader Julius Ihonvbere.

The legislative process had been delayed for about three months due to public hearings and stakeholder consultations.

Lawmakers debated how best to reform tax collection, assessment, and dispute resolution mechanisms in Nigeria.

Among the key provisions, one bill seeks to repeal the Federal Inland Revenue Service (FIRS) Act and replace it with the Nigeria Revenue Service (NRS), granting it greater powers for revenue collection.

Another establishes a Joint Revenue Board, a Tax Appeal Tribunal, and a Tax Ombudsman to address tax disputes.

However, despite broad support, lawmakers from northern Nigeria opposed the bills, aligning with their governors who demanded further consultations before passage.

Speaker Tajudeen Abbas presided over the plenary as the House voted overwhelmingly in favor of the bills.

The passage of these bills is a significant step in Nigeria’s ongoing tax reform efforts.

The bills were first introduced in October 2024, and after months of debate and consultation, they have finally been passed.

The tax reform bills are expected to modernize Nigeria’s tax system, reduce multiple taxation, improve revenue collection, and diversify the economy.

However, some lawmakers have expressed concerns about certain provisions, particularly the distribution of Value Added Tax (VAT) revenue.

The National Economic Council (NEC) had recommended that President Tinubu withdraw the bills for further consultations.

However, the President insisted that concerns should be addressed within the National Assembly.

The House Leader, Prof. Julius Ihonvbere, commended President Tinubu for introducing the bills, saying they would propel the country’s economic transformation.

He also praised the lawmakers who voiced their concerns, saying that the debates helped refine the legislation.

Minority Leader Hon. Kingsley Chinda acknowledged the positive intentions behind the bills but expressed reservations about certain provisions.

He assured Nigerians that the House would address problematic clauses during the legislative process.

The passage of the tax reform bills has been met with mixed reactions. While some lawmakers have welcomed the move, others have expressed concerns about the potential impact on businesses and individuals.

As the bills move to the next stage, it remains to be seen how they will be implemented and what effect they will have on Nigeria’s economy.

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