*President Bola Ahmed Tinubu welcomes further consultations and engagement with key stakeholders to address any reservations about the tax reform bills while the National Assembly considers them for passage into law

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President Bola Ahmed Tinubu says the legislative process, which has already begun on the tax reform bills, provides an opportunity for inputs and necessary changes without withdrawing the bills from the National Assembly (NASS), in Abuja, FCT.

Tinubu noted this Friday, November 1, 2024, after he had received the National Economic Council’s (NEC) recommendation that the tax reform bills already sent to the National Assembly be withdrawn for further consultation.

The President commended the National Economic Council members, especially Vice-President Kashim Shettima and the 36 State Governors, for their advice.

According to the Nigerian leader, the legislative process, which has already begun, offers an opportunity for inputs and necessary changes without withdrawing the bills from the Federal legislature.

NASS to consider bills with inputs for passage into laws

Urging the Council to allow the process to take its full course, Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, Friday stated President Tinubu, however, welcomed further consultations and engagement with key stakeholders to address any reservations about the bills while the National Assembly considers them for passage.

The statement recalled that President Tinubu set up the Presidential Committee on Tax and Fiscal Policy Reform in August 2023 with only an objective: to reposition the economy for better productivity and efficiency and make the operating environment for investment and businesses more conducive.

The Federal Government said the objective remain had remained more critical even today than ever before.

The statement also explained the Committee worked for over a year and received inputs from various segments of society across the geopolitical zones.

These, the Federal Government stated, include trade associations, professional bodies, different Ministries and Government Agencies, Governors, traders, students, business owners, and the organised private sector.

Onanuga affirmed the tax reform bills that emerged were distilled from the extensive work of the Presidential Committee.

Basic objectives of tax reform bills, by Presidency

In highlighting the objectives of the tax reform regime, the Presidency said the tax bills before the National Assembly aim to streamline Nigeria鈥檚 tax administration processes, completely overhaul the nation鈥檚 tax operations, and align them with global best practices.

The government further noted the major highlights of the four Bills in NASS are as follows:

1. The Nigeria Tax Bill: This Bill seeks to eliminate multiple taxation and make Nigeria鈥檚 economy more competitive by simplifying tax obligations for businesses and individuals nationwide.
2. The Nigeria Tax Administration Bill (NTAB): This Bill proposes new rules governing the administration of all taxes in the country. Its objective is to harmonise tax administrative processes across Federal, state and local jurisdictions to ease taxpayers’ compliance and enhance the revenue for all tiers of government.
3. The Nigeria Revenue Service (Establishment) Bill: The Bill seeks to re-establish the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect its mandate as the revenue agency for the entire federation, not just the Federal Government.
4. The Joint Revenue Board Establishment Bill: This Bill proposes creating a Joint Revenue Board to replace the Joint Tax Board, covering federal and all state tax authorities.

The fourth bill will also establish the Office of Tax Ombudsman under the Joint Revenue Board, protecting taxpayers’ interests and facilitating dispute resolution.

Besides, the overarching objective of the tax reform bills is to effectively coordinate federal, state, and local tax authorities, thereby eliminating the overlapping responsibilities, confusion, and inefficiency that have plagued tax administration in Nigeria for decades.

It also explained that under existing laws, taxes such as Company Income Tax (CIT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Petroleum Profits Tax (PPT), Tertiary Education Tax (TET), Value-Added Tax (VAT), and other taxing provisions in numerous laws are administered separately, with individual legislative frameworks.

The statement disclosed the proposed reforms seek to consolidate these numerous taxes, integrating CIT, PIT, CGT, VAT, PPT, and excise duties into “a unified structure to reduce administrative fragmentation.”

The government as well clarified while there may be differences in approach or specific provisions of the new tax bills, what is not in contention is the need to review our tax laws and how we administer them to serve our overall national development agenda.

The Presidential aide stated: “President Tinubu will continue to respect and welcome the advice and recommendations of the National Economic Council, an essential constitutional organ of government on economic matters.”

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