Tax reforms necessary to revamp Nigerian economy – CITN chief

Samuel Agbeluyi, president of the Chartered Institute of Taxation of Nigeria (CITN) has backed the series of tax reforms awaiting legislative action at the National Assembly, emphasising that they are “necessary at this point in our national life”.

Agbeluyi stated that the four bills which have generated heated debate among political leaders and stakeholders were important in order to get the country’s economy back on track.

“The bills are capable of transforming the tax space in Nigeria, addressing systemic challenges that have bedeviled the effectiveness of our tax system and to engender an enabling environment for businesses to thrive,” the CITN chief said at an organised workshop in Lagos.

Read also: 10 changes to expect as FG’s tax reforms begin

He further stated that the President Bola Tinubu-led government through the policy reforms aims to diversify the country’s revenue base, improve tax compliance and support economic growth.

“It is not in doubt that since its inauguration in May 2023, the current Nigerian government has demonstrated the political will and a strong commitment to overhauling the nation’s tax system, to reduce dependency on oil revenues and promote fiscal stability,’ Agbeluyi said.

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.

Taiwo Oyedele, the chairman of the Presidential Tax Reforms and Fiscal Policy has continued to emphasize that the tax reforms are necessary to restore confidence in the Nigerian economy, reduce poverty levels and enhance shared prosperity.

He stated that the reforms are aimed at alleviating the rising cost of living, fostering economic equity, and creating a business-friendly environment to attract local and foreign investments.

Read also: Why tax reform bills will fix the Nigerian economy – Oyedele

Following approval of the Federal Executive Council in October, Tinubu transmitted four tax bills to the National Assembly for consideration.

The government says the bills are aimed at overhauling the nation’s tax system, prevent leakages and ensure true fiscal federalism.

They include the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

The proposed legislation seeks to consolidate existing tax laws, establish clearer frameworks for tax administration, and create bodies like the Tax Appeal Tribunal and the Office of the Tax Ombudsman.

Meanwhile, the Senate on Wednesday suspended action on the tax reform bills as controversy lingers.

It further instructed the Committee on Finance to suspend action on the public hearing pending the time the agitation in the public space is addressed.

The Senate however constituted a special committee to meet with the executive branch and work with the Federal Government to resolve the issues surrounding the tax reform bills.