Nigerian Senate Approves Key Tax Reform Bills, Rejects VAT Hike

Legislative Breakthrough in Fiscal Reform

The Nigerian Senate has passed two crucial tax reform bills proposed by President Bola Tinubu’s administration, marking a significant step in the country’s fiscal restructuring efforts.

Approved Legislation

The upper chamber approved the Nigeria Revenue Service (Establishment) Bill and the Joint Revenue Board (Establishment) Bill, both designed to overhaul Nigeria’s tax collection and management framework.

Legislative Process

The bills underwent rigorous scrutiny by an ad hoc committee led by Senator Sani Musa (Niger East), with each clause extensively debated during the Committee of the Whole session before passing via voice vote.

Leadership Statement

Senate President Godswill Akpabio emphasized the transformative potential of the legislation: “These bills will add immense value to governance and transform how taxes are collected and distributed in Nigeria.”

Pending Legislation

The Senate plans to consider the remaining two bills – the Nigeria Tax Administration Bill and the Nigeria Tax Bill – with Akpabio vowing: “We are committed to concluding the outstanding bills tomorrow, even if we have to remain here until 10 pm.”

Consumer Protection Measure

In a relief to Nigerian households, lawmakers rejected a proposed increase in Value Added Tax (VAT) from 7.5% to 10%, acknowledging current economic pressures on citizens.

Broader Implications

This legislative action demonstrates the Tinubu administration’s commitment to modernizing Nigeria’s revenue system while balancing economic realities faced by the populace.

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