House Of Reps Resumes Deliberation On Tax Reform Bills

House Of Reps Resumes Deliberation On Tax Reform Bills

The House of Representatives will begin deliberations today on the tax reform bills President Bola Ahmed Tinubu presented to the National Assembly for consideration and approval.

The debate on the bills was initially scheduled for November 30, 2024, but was indefinitely suspended following stiff opposition from lawmakers and governors from the northern region.

At the time, northern governors had expressed concerns that some provisions in the bills were not in the best interest of their region.

A lawmaker from the North-West geopolitical zone, who spoke anonymously with Daily Trust, confirmed on Tuesday that the House would resume legislative work on the bills, with discussions prominently featured on today’s Order Paper.

Northern Lawmakers To Ensure Regional Interests

Despite reports that northern governors have softened their stance on the bills, lawmakers from the region have vowed to ensure that no provision deemed harmful to the North is passed.

“We in the Northern Caucus (of the House) met today (yesterday), with all leaders of the zonal caucuses in our part of the country, including the Speaker (Abbas Tajudeen), in attendance, and we have resolved to ensure proper scrutiny of the tax reform bills.

“The House (of Representatives) will begin debate on the bills tomorrow (today), and we have agreed to work collectively and follow the proceedings diligently to ensure that we vigorously scrutinize all the bills so that no section that is harmful to the interests of our people is allowed to be passed into law,” a northern lawmaker disclosed.

The meeting was presided over by the Chairman of the Northern Caucus, Alhassan Ado Doguwa, and attended by key zonal caucus leaders, including Ahmed Idris Wase (North Central), Mukhtar Betara (North East), and Sada Soli Jibia (North West).

Compromise On VAT Revenue Sharing

The Nigeria Governors Forum (NGF) recently announced that all 36 state governors have endorsed a modified version of the tax reform bills following negotiations with the Taiwo Oyedele-led Presidential Committee on Fiscal Policy and Tax Reforms.

As part of the compromise, the revenue-sharing formula for Value Added Tax (VAT) was adjusted.

The initial proposal of allocating 60% of VAT revenue based on derivation was reduced to 30%, with 50% shared equally among states and the remaining 20% distributed based on population.

This modification aims to address the concerns raised by northern governors and lawmakers.

Nasarawa State Governor, Abdullahi Sule confirmed that governors would now seek the support of legislators to ensure the passage of the bills in line with the agreed revisions.

Overview Of The Tax Reform Bills

President Tinubu transmitted four tax reform bills to the National Assembly on September 3, 2024, following the recommendations of the Oyedele-led presidential committee. The bills include:

Nigeria Tax Bill 2024 – Establishes a fiscal framework for taxation in Nigeria.

Tax Administration Bill – Provides a clear legal structure for tax collection and minimizes disputes.

Nigeria Revenue Service Establishment Bill – Repeals the Federal Inland Revenue Service (FIRS) Act and establishes the Nigeria Revenue Service.

Joint Revenue Board Establishment Bill – Creates a tax tribunal and a tax ombudsman for resolving tax-related disputes.