Reps advance Tinubu’s tax reform bills

The House of Representatives has moved forward with the tax reform bills, passing them for a second reading after an extensive debate.

The Lower Chamber also consolidated the four tax bills following a motion by Julius Ihonvbere, the House Leader, during plenary on Wednesday.

The bills initially faced stiff opposition especially from northern lawmakers when it was introduced to the House, particularly from northern lawmakers, leading to the suspension of debates to allow for wider consultations.

Read also: House of Reps inches closer to passing controversial tax reform bills

While the Senate had already passed the bills for a second reading and referred them to its Committee on Finance for further consideration, progress in the House of Representatives had been stalled, with the bills only passing the first reading amidst resistance.

However, following consultations largely led by the northern governor’s forum, the lower house resumed debate on the bills. Majoriity lawmakers agreed and voted that the bills should scale second reading and proceed to public hearing where the various clauses of concerns will be thoroughly reviewed before the bills would be passed.

While several lawmakers praised the bills as essential for boosting federal revenue and improving the ease of doing business, others raised serious concerns. Among the most contentious proposals is the gradual increase in Value Added Tax (VAT). Many lawmakers called for a significant reduction in the proposed VAT rate, warning that an increase would exacerbate hardship and drive up the cost of living.

Ali Isa, representing Balanga/Billiri Federal Constituency in Gombe State, criticised the proposed VAT hike, noting that increasing it from the current 7.5% would place an undue burden on citizens. He also argued that the introduction of a development levy would further strain the populace.

Another contentious issue was the extensive discretionary powers granted to the president under the proposed legislation. Hassan Hussein, representing Nasarawa Federal Constituency, expressed concern that such powers could be subject to abuse, calling for amendments to provide checks and balances.

Lawmakers also sought further clarification on the administration of Company Income Tax and Personal Income Tax, with several members insisting on the need for greater transparency and accountability in their implementation.

After the Bills were read for the second time, Tajudeen Abbas the speaker of the House referred them to the committee of Finance on for further legislative action.

Read also: Tinubu’s Tax Reform Bills and Nigeria’s economic growth

The bills are: A Bill For an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States and Local Governments; Prescribe the Powers and Functions of Tax Authorities, and for Related Matters (HB.1756);

A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007 and Enact the Nigeria Revenue Service (Establishment) Bill to Establish Nigeria Revenue Service, charged with Powers of Assessment, Collection of, and Accounting for Revenue Accruable to the Government of the Federation and for Related Matters (HB.1757);

A Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombud, for the Harmonisation Coordination and Settlement of Disputes arising from Revenue Administration in Nigeria and for Related Matters (HB.1758) and;

A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks Relating to Taxation and Enact the Nigeria Tax Act to Provide For Taxation of Income, Transactions and Instruments, and for Related Matters (HB.1759).