Nigerian Senate Passes Final Two Tax Reform Bills, Paving Way for Presidential Assent

The Nigerian Senate has completed legislative work on four key tax reform bills proposed by President Bola Tinubu, passing the remaining two bills during Thursday’s plenary session.

Video credit to: BMP TV

Legislative Milestone Achieved

The upper chamber approved the Nigeria Tax Bill 2024 and the Joint Revenue Board Establishment Bill, following Wednesday’s passage of the Nigeria Revenue Service Establishment Bill and the Tax Administration Bill.

With all four bills now passed, the next step involves harmonization between the Senate and House of Representatives through a conference committee before final transmission to President Tinubu for signing into law.

Tax Reform Package Details

The comprehensive tax reform measures aim to modernize Nigeria’s tax system, streamline revenue collection, and enhance administrative efficiency. These reforms form a core component of the federal government’s economic strategy under the Renewed Hope initiative.

Key Impacts of the Legislation

• Strengthened tax governance and compliance mechanisms
• Improved revenue collection efficiency
• Modernized tax administration framework
• Enhanced fiscal sustainability

Notable Legislative Decisions

During deliberations, the Senate made several significant determinations:

VAT Rate Maintained

The chamber rejected the proposed increase in Value-Added Tax from 7.5% to 10%, while approving VAT input claims on fixed assets, overhead costs, and administrative expenses.

Critical Agencies Preserved

The Senate introduced a 4% development levy to sustain funding for key institutions:

• TETFUND – 50% allocation
• Nigerian Education Loan Fund – 15%
• NITDA – 10%
• NASENI – 10%
• National Cybersecurity Fund – 5%
• Defence Security Fund – 10%

Senate President Godswill Akpabio emphasized these agencies’ vital role in human capital development and economic growth, warning against funding cuts that could hinder progress in education, technology, and national security.

Next Steps in Legislative Process

The Senate will now establish a conference committee to reconcile versions of the bills with the House of Representatives before final presidential assent. This harmonization process ensures legislative consistency across both chambers.

President Tinubu originally transmitted the bills as part of his administration’s broader efforts to overhaul Nigeria’s taxation system and improve revenue collection mechanisms.

All credit goes to the original article. For more information, read the: Source link