Tax Reform Bills Pass Second Reading in Senate

The Senate has advanced four tax reform bills to the second reading stage during its plenary session on Thursday, November 28.

Following their approval, Senate President Godswill Akpabio referred the bills to the Committee on Finance, chaired by Senator Sani Musa (APC, Niger East), for further legislative review, with a directive to report back within six weeks.

The development came after Senate Leader Senator Opeyemi Bamidele (APC, Ekiti Central) presented a lead debate on the bills, which was subsequently deliberated upon by senators during the session.

This followed a lead debate on the bills presented by Senate Leader, Senator Opeyemi Bamidele (APC, Ekiti Central) and debated by senators during plenary.

In his presentation, Bamidele said that they are “A Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombud, for the harmonization, coordination and settlement of disputes arising from revenue administration in Nigeria and for related matters, 2024 (SB. 583).

“A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007 and enact the Nigeria Revenue Service (Establishment) Act to Establish the Nigeria Revenue Service, charged with powers of assessment, collection of, and accounting for revenue accruable to the Government of the Federation, and for related matters, 2024 (SB. 584)

“A Bill for an Act to Provide for the assessment, collection of, and accounting for revenue accruing to the Federation, Federal, States and Local Governments; prescribe the powers and functions of tax authorities, and for related matters, 2024 (SB. 585) –

“A Bill for an Act to Repeal certain Acts on taxation and consolidate the legal frameworks relating to taxation and enact the Nigeria Tax Act to provide for taxation of income, transactions and instruments, and for related matters, 2024 (SB. 586).”

Before debating the tax reform bills, the Senate held a closed-door session from 11:55 AM to 12:42 PM. This followed presentations made by senior officials from President Bola Tinubu’s administration on November 27, during which they provided detailed insights into the proposed legislation.

The tax reform bills had already stirred controversy a day earlier, during the Senate plenary on November 27, when their introduction for debate led to a heated argument. Senators clashed over the bills being raised without inclusion on the Order Paper, the formal agenda for proceedings.

On September 3, President Bola Tinubu submitted four tax reform bills to the National Assembly for consideration, based on recommendations from the Presidential Committee on Fiscal and Tax Reforms, chaired by Taiwo Oyedele. The proposed legislation aims to overhaul the nation’s tax framework by addressing gaps and inefficiencies.

The bills include the Nigeria Tax Bill 2024, designed to establish a comprehensive fiscal framework for taxation in the country, and the Tax Administration Bill, which seeks to provide a streamlined legal structure for all taxes, reduce ambiguities, and minimize disputes.

Others are the Nigeria Revenue Service Establishment Bill, which seeks to repeal the Federal Inland Revenue Service (FIRS) Act and establish the Nigeria Revenue Service (NRS) to oversee tax administration in the country, and the Joint Revenue Board Establishment Bill, aimed at creating a tax tribunal and establishing a tax ombudsman to handle disputes and improve tax governance.

The Northern governors, traditional rulers, and the Northern Elders Forum had previously rejected the proposed tax reform bills, arguing that they were not in the best interest of the nation.

In response, the National Economic Council (NEC), chaired by Vice President Kashim Shettima, called for the withdrawal of the bills from the National Assembly for further consultations.

However, President Tinubu responded to this request on Thursday, October 31, by asserting that the bills should be allowed to go through the necessary legislative processes in both chambers.

He emphasized that this would provide Nigerians an opportunity to fully examine the bills and make their contributions, particularly during the public hearing phase.