House of Reps officially approves tax reform bills

The House of Representatives has officially adopted the Finance Committee’s report on the tax reform bills, moving one step closer to a major overhaul of Nigeria’s tax system.

During Thursday’s plenary session, James Falake, the Chairman of the Committee on Finance, presented a motion for the clause-by-clause consideration of the bills.

Following thorough discussions, the committee’s recommendations were approved, signaling a significant legislative development.

This move follows President Bola Tinubu’s call to the National Assembly on 3rd of October 2024, urging lawmakers to pass the Nigeria Tax Bill, the Tax Administration Bill, the Joint Revenue Board Establishment Bill, and the Nigeria Revenue Service Bill.

The tax reform proposals initially faced resistance from northern governors, who raised concerns about the potential negative impact on the region’s interests.

They urged the National Assembly to reject the bills unless a fair and balanced implementation strategy was adopted.

However, in January, the Nigeria Governors’ Forum (NGF) gave its backing to the bills after reaching an agreement on a more equitable VAT-sharing formula.

The Senate took a step forward by passing the bills for a second reading in November 2024, and the Green Chamber followed suit with its own approval after extensive debates in February.

Additionally, a public hearing was held to further engage stakeholders in the legislative process. [CONTINUE READING HERE]>>>>>