The Senate is expected to pass the four tax reform bills submitted by President Bola Tinubu to the National Assembly, marking a significant step in the administration’s efforts to overhaul Nigeria’s tax system. The legislative approval follows the passage of the bills by the House of Representatives two weeks ago and is anticipated to be completed today.
Sources within the Senate confirmed that the approval process had been delayed due to other pressing legislative matters but is now moving forward. The bills, which underwent a clause-by-clause review at the Committee of the Whole, introduce several fiscal policy adjustments aimed at improving revenue generation, simplifying tax administration, and addressing gaps in the current tax framework.
Among the notable provisions in the reform package is the retention of the Value Added Tax (VAT) rate at 7.5 percent, rejecting a proposed staggered increase. Additionally, the bills extend income tax exemptions to specific sectors, including agricultural businesses and military personnel, as part of measures to stimulate economic growth and support key industries.
The tax reform process has been the subject of extensive deliberations, including a two-day public hearing at the National Assembly. The hearing brought together key stakeholders from Nigeria’s economic and financial sectors, including Minister of Finance and Coordinating Minister of the Economy Wale Edun, Chairman of the Federal Inland Revenue Service Zacch Adedeji, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited Mele Kyari, and Comptroller General of Customs Adewale Adeniyi, among others. Discussions centered on refining the proposed policies to align with Nigeria’s economic objectives and ensure a balanced approach to taxation.
The reforms are expected to streamline tax collection processes, strengthen compliance, and enhance the efficiency of revenue administration in Nigeria. With the Senate’s approval anticipated today, the bills will proceed to President Tinubu for final assent, paving the way for their implementation as part of broader economic reforms designed to boost fiscal stability and national development.
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