• VAT hike reviewed, exemptions included for low-income earners and SMEs
• Senate to consider bills after recess; Bamidele says reforms will boost economy
State governors are now in alignment with the Federal Government on the controversial Tax Reform Bills following major amendments that reflect their input, Nasarawa State Governor Abdullahi Sule disclosed yesterday.
Speaking at a Veritas Media event in Abuja, Governor Sule revealed that the four Tax Reform Bills passed by the House of Representatives on March 18 incorporated revisions proposed by the governors, especially those from the North, who had earlier raised concerns.
Initially, the governors opposed several provisions in the original Bills forwarded by President Bola Ahmed Tinubu to the National Assembly—particularly the plan to increase the Value Added Tax (VAT) rate from 7.5% to 10%, and eventually 15% within five years.
Sule commended President Tinubu for his willingness to engage with the governors on their concerns.
“He called us to a meeting and my colleagues mandated me to speak on their behalf and list our misgivings,” Sule said. “The President asked us to send our proposal to amend the VAT section, and we did. Those adjustments are exactly what made it into the version passed by the House.”
Despite an initial request from the National Executive Council (NEC) to withdraw the Bills, the President maintained his stance, urging governors to participate in the public hearing process. This engagement eventually led to a consensus.
Meanwhile, Senate Leader Opeyemi Bamidele confirmed that the Senate will consider and pass the Bills after its recess. He spoke at an empowerment programme in Ado Ekiti, describing the Bills as “game changers” that will transform Nigeria’s fiscal landscape.
According to Bamidele, the new tax framework will address longstanding issues of inequality in the system. Under the proposed regime:
Individuals earning N1 million or less annually will be exempted from tax.
Small businesses with capital of N50 million or less will also enjoy tax exemptions.
VAT will be removed from exports and essential goods and services, including food, education, transportation, and healthcare.
He noted that the proposed tax-to-GDP ratio of 25–27.5% is still modest compared to other African nations like South Africa (27%) and Kenya (30%).
Bamidele also expressed optimism about the Constitution amendment process, saying the 10th Senate is committed to building a more inclusive and efficient governance structure.
He highlighted recent legislative efforts such as the amendment of the National Social Investment Programme (NSIP) Act to ensure effective service delivery and poverty alleviation.
“The frameworks we are putting in place will strengthen public institutions, promote equity, drive economic growth, and help close the gap between the rich and the poor,” he added.
The Senate is expected to reconvene after the Easter and Eid holidays to consider and possibly pass the Tax Reform Bills in the national interest.
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