By The House of Representatives passed a consolidated package of tax reform bills for second reading on Wednesday following an extensive debate on the general principles of the legislation. The four bills, originally submitted by President Bola Ahmed Tinubu last year, were merged into a single legislative package after a motion by House Leader Prof Julius Ihonvbere and with leave granted by Speaker Abbas Tajudeen.
The consolidated bills include an act to provide for the assessment, collection, and accounting for revenue accruing to the Federation, Federal, State, and Local Governments while prescribing the powers and functions of tax authorities (HB.1756); an act to repeal the Federal Inland Revenue Service (Establishment) Act, No. 13, 2007 and to establish the Nigeria Revenue Service with powers for revenue collection and accounting (HB.1757); an act to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombud to harmonize, coordinate, and settle disputes arising from revenue administration in Nigeria (HB.1758); and an act to repeal certain existing tax legislation, consolidate the legal framework for taxation, and enact the Nigeria Tax Act to provide for the taxation of income, transactions, and instruments (HB.1759).
House Leader Prof Julius Ihonvbere led the debate on the general principles of the consolidated tax reforms, stressing the urgent need to modernize Nigeria’s outdated tax system. He acknowledged the contribution of the Nigerian Governors’ Forum for providing valuable input on revising the VAT sharing formula, which helped address earlier concerns regarding the proposed reforms. Ihonvbere noted that the new package is designed to empower citizens and drive inclusive growth by harmonizing multiple taxes, reducing PAYE rates, exempting essential commodities such as food, healthcare, and education from VAT, and providing incentives for low-income earners.
During the debate, several lawmakers expressed their support for the bills. Rep Bamidele Salam (PDP, Osun) remarked that the reforms would channel more resources to subnational governments, addressing a tax system that has long stifled growth and discouraged investment. Rep Sada Soli emphasized that fairness and clarity must be central to the reforms, raising concerns over ambiguities in certain clauses that could lead to abuse or misinterpretation. Rep Ademorin Kuye underscored the necessity of the tax reforms by pointing out that increased revenue generation is critical for addressing Nigeria’s infrastructural deficit.
After extensive deliberation, Speaker Abbas Tajudeen put the consolidated bills to a voice vote, and the motion passed overwhelmingly, setting the stage for further legislative scrutiny of the tax reform package.
