Senate Gives Nod to Tinubu’s Tax Reform Bills

The Senate has nodded to President Bola Tinubu’s proposed tax reform bills, passing them for a second reading.

The four bills, aimed at overhauling Nigeria’s tax administration, are the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

According to THECABLE report, the bills passed second reading after Opeyemi Bamidele, majority leader of the senate, led a debate during a closed-door session.

While leading a debate on them, Bamidele said the bills would simplify the tax landscape, reduce the burden on small businesses, and streamline how taxes are collected.

“It will eliminate double taxation. In the area of tax exemption of the salaries below the minimum wage,” the senate leader said.

“It is proposed that the state governments share 55 percent of VAT from 15 percent. There is a reasonable effort to establish core tax statutes in the bill.”

Also speaking, Seriake Dickson, senator representing Bayelsa west, stated that the discovery of oil in Nigeria did not allow the country have a good taxation system as a means of revenue.

“I am aware that some issues have been raised and that is legitimate,” he said.

“There is nothing wrong in saying that phone calls are made in Sokoto are calculated are paid to those states. We should ensure that this is transparent.”

However, Ali Ndume, senator representing Borno south, said the bills should be stood down for further legislative work.

“Reforms are necessary if we have to move forward. My problem is number one is timing. Number two, the issue of derivation and VAT,” he said.

“The constitution has to be amended for some of these provisions to be effected.”

Countering Ndume’s position, Tahir Monguno, chief whip, said the bills should not be withdrawn and that changes could be made during the public hearing on them.

“These bills will reduce the tax burden on Nigerians,” he said.

The bill were passed after Senate President Godswill Akpabio put them to a vote.