The Senate on Thursday passed for second reading, the tax reform bills forwarded to it by President Bola Tinubu in October 2024.
The passage followed a debate among the lawmakers.
The bill was thereafter referred to the Committee on Finance, which was asked to revert in not more than six weeks.
Before the debate, the lawmakers had earlier gone into about an hour closed-door session.
On their return from the executive session, the Senate Leader, Opeyemi Bamidele (APC, Ekiti Central), led the debate on the bill.
The four tax bills sent to the National Assembly include the Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a legal framework for all taxes in the country and reduce disputes.
Others are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service; and the Joint Revenue Board Establishment Bill which will create a tax tribunal and a tax ombudsman.
Bamidele said, “The Nigerian tax reforms bill is a significant move to overhaul the country’s tax system. These bills aim to simplify the tax landscape, reduce the burden on small businesses, and streamline how taxes are collected.
“In broad terms, the four bills seek to ensure uniformity in tax revenue administration in Nigeria in accordance with the provisions of the Constitution, eliminate the incidence of double taxation across the country, deploy taxation as a tool to encourage private sector investments in critical industries and boost individual disposal incomes through targeted tax exemptions as captured in the various Bills.
“In the area of tax exemptions, there is a proposal to exempt those whose salaries are not more than the minimum wage from P.A.YE deductions while small businesses with an annual turnover of N50,000,000 or less are equally exempted from payment of taxes. Similarly, there is a proposed huge reduction in company income tax from the current 30% to 25% by 2026, as part of a deliberate attempt to curtail the incidence of double taxation and multiplicity of taxes and levies.”
The bills were supported by lawmakers like Senators Sani Musa (APC, Niger East), Seriake Dickson (PDP, Bayelsa West), and Tahir Mongunu (APC, Borno North)
However, in an opposing voice, Senator Ali Ndume (APC, Borno South) asked that the bill be stepped down for further consultation.
He said, “Generally, the bill is good, but I have issues with the timing and most importantly issues surrounding derivation and VAT.”
When the Senate President, Godswill Akpabio, put the passing of the bills to a voice vote, the majority of the lawmakers shouted, “Aye.”
Akpabio then hit the gavel in the support of the ayes.
PUNCH Online reports that the president’s economic team led by the Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele; alongside the Chairman, Federal Inland Revenue Tax, Zacchaeus Adedeji; and the Director-General, Budget Office, Tanimu Yakubu; were allowed into the plenary to explain the bills in detail to the lawmakers.
