National Assembly Transmits Landmark Tax Reform Bills to President Tinubu

The National Assembly has officially transmitted a package of landmark tax reform bills to President Bola Tinubu for assent. This marks a major step forward in Nigeria’s tax modernization agenda.

The Four Bills Sent to the Presidency:

1. Nigeria Revenue Service (Establishment) Bill
2. Nigeria Tax Administration (Establishment) Bill
3. Nigeria Tax (Consolidation) Bill
4. Joint Revenue Board (Establishment) Bill
   

These bills are designed to:

1. Replace the existing Federal Inland Revenue Service (FIRS) with the Nigeria Revenue Service
2. Establish a more collaborative Joint Revenue Board between federal and state tax bodies
3. Simplify and consolidate Nigeria’s tax laws under a unified tax code
4. Strengthen digital tax administration and taxpayer services

Key Highlights:

1. VAT Reform: A proposal allowing states to retain 60% of VAT was revised to 30%, with revenue shared based on place of consumption rather than state of origin.
2. Revenue Autonomy: The reforms aim to give more fiscal power to states while maintaining national tax policy consistency.
3. Modernization Goals: These laws are part of President Tinubu’s Renewed Hope Agenda, aimed at broadening the tax base and making tax collection more efficient and equitable.

What’s Next?

President Tinubu is expected to review and sign the bills into law soon. Once enacted, the reforms are anticipated to:

1. Reduce tax evasion
2. Improve revenue generation
3. Support Nigeria’s economic recovery and development efforts