Tax reform bills passed for second reading – Oyedele

Nigeria’s House of Representatives has passed the tax reform bills for second reading after which a public hearing process would be held, according to Taiwo Oyedele, head of the Presidential Fiscal Policy and Tax Reforms Committee.

Oyedele on Wednesday said via his X handle that the tax reforms which aims to simplify Nigeria’s tax system would be scrutinised by the House Committee in charge of finance to allow for further legislative approval.

“The House of Representatives has today passed the four tax reform bills for Second Reading and referred them to the Finance Committee of the House for further legislative work, including public hearing,” Oyedele said.

“We are grateful to the lawmakers for their robust debates and diligent consideration of the bills and look forward to continued engagement with the National Assembly and active participation in the public hearing process,” the tax chief stated.

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Oyedele had said in a forum that the federal government is expected to kick off its tax reforms before the end of the first quarter of the year. This legislative process, if quicker, may mean Nigeria’s tax system will be overhauled between March and July.

The reforms are intended to centralise and simplify tax collection, including a reduction of more than 60 separate taxes and levies to six.

Nigeria is aiming to harmonize its complex tax system with a new bill that’s aimed at unburdening multiple taxation and ensuring exemptions for low-income earners.

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But the reforms have sparked debates, many Northern leaders calling for its withdrawal while other stakeholders are urging the federal government to engage in wider consultations.

The Committee has a core responsibility of transforming Nigeria’s revenue generation for sustainable development to achieve at least 18 percent tax to GDP ratio by 2026.

He argued that part of what the tax reforms would do is to help the naira to be stable, incentivising business operations.