*Taiwo Oyedele, Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, disclosed the National Assembly, in Abuja, will pass Nigeria鈥檚 Tax Reforms Bills into law in the First Quarter of 2025, but implementation of the new tax regime begins in the economy July this year

Gbenga Kayode | 绿帽献妻

Nigeria鈥檚 National Assembly (NASS), in Abuja, FCT, will pass the much-debated Tax Reform Bills into law in the First Quarter (Q1) 2025.

绿帽献妻 gathered Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, who disclosed this at the weekend during The Platform, an event 鈥楾he Covenant Nation鈥� had organised to facilitate national development, said the implementation of the Tax Reform Bills also would commence July this year.

The Federal Legislature is expected to resume deliberations on the controversial tax bills after the suspension of actions on the documents late 2024.

The National Assembly Complex, Abuja, FCT

It is recalled President Bola Ahmed Tinubu, October 13, 2024, had submitted the four tax reforms bills to the National Assembly for consideration and passage into law.

Oyedele was also quoted to have聽 said: 鈥淚 need to talk about the tax reforms. Part of the expectation is we expect the tax reforms to be approved, particularly the Tax Reform Bills in 2025.

鈥淥ur expectation is before the end of Q1 and therefore, we can give notice to taxpayers to prepare themselves with capacity and begin to implement around 1st of July.鈥�

The Chairman of the Committee also spoke on other issues in the economy, including fuel subsidy removal, debt servicing, and Gross Domestic Product (GDP) growth rate, lauding President Tinubu for the ongoing economic reforms.

He stated: 鈥淪ince assuming office in May 2023, President Tinubu has implemented a number of reforms.聽 Top among them are the removal of fuel subsidies and introduction of the tax bills.鈥�

Intense legislative debates and public discourse on Tax Reforms Bills

Shortly after President Tinubu’s transmission of the tax reforms documents, and subsequent debates in the NASS, resulting in the recent passage for the second reading in the Senate last year, the Tax Reforms Bills have continued to generate heated debates among Nigerians.

The Northern region was said to be the most vocal in its criticism of the Tax Bills, which have pitted some State Governors under the NGF as well as the Federal lawmakers against the Federal Government.

Likewise, the National Economic Council (NEC), at some point, urged the President to withdraw the bills to allow for further consultations, inputs, and contributions from more stakeholders in the country鈥檚 economy.

Aside from these entities, the Nigeria Labour Congress (NLC), in its New Year message to Nigerians, especially workers January 1, as well insisted that the Federal Government should withdraw the hitherto controversial Tax Reforms Bills from NASS.

Comrade Joe Ajaero, President of NLC, in the New Year message titled, “In 2025, hope is in our collective resolve”, said the need to withdraw the bills was based on 鈥渢he welfare of the Nigerian workers鈥�.

State Governors express 鈥榮trong support鈥� for tax bills for economic stability

In their collective resolve after several weeks of deliberations on the documents, the Nigerian State Governors, under the aegis of the Nigeria Governors鈥� Forum (NGF) Thursday, January 6 finally expressed their 鈥渟trong support鈥� for the ongoing tax reforms towards enhancing economic stability in the country line with global best practices.

The State Chief Executives also proposed a new 鈥渆quitable鈥� sharing formula for the Value-Added Tax (VAT).

Governor AbdulRahman AbdulRazaq of Kwara State and Chairman of NGF, disclosed this development in a communiqu茅 issued Thursday after the NGF鈥檚 Subnational Consultations and Engagement with the Presidential Tax Reform Committee.

AbdulRazaq stated: 鈥淲e, members of the Nigeria Governors鈥� Forum (NGF) and Presidential Tax Reform Committee, convened on the 16th of January, 2025, to deliberate on critical national issues, including the reform of Nigeria鈥檚 fiscal policies and tax system, and arrived at the following resolutions:

鈥淭he Forum reiterated its strong support for the comprehensive reform of Nigeria鈥檚 archaic tax laws.

鈥淢embers acknowledged the importance of modernising the tax system to enhance fiscal stability and align with global best practices.鈥�

The Chairman of NGF also said: 鈥淭he Forum endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources: 50% based on equality, 30% based on derivation, and 20% based on population.

鈥淢embers agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time, to maintain economic stability.鈥�

The communiqu茅 noted: 鈥淭he Forum advocated the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.

鈥淭he meeting recommended that there should be no terminal clause for TETFUND, NASENI, and NITDA in the sharing of development levies in the bills.鈥�

Governor AbdulRazaq added: 鈥淭he meeting supports the continuation of the legislative process at the National Assembly that will culminate in the eventual passage of the Tax Reforms Bills.鈥�

For development, prosperity, we won鈥檛 re-engineer the economy with 鈥榦ld broken book鈥�, says Tinubu

Reacting to strident criticisms and uproar that have greeted the Tax Reforms Bills, particularly in certain sections of the country, President Tinubu to restated that his administration鈥檚 task of re-engineering the Nigerian economy for considerable development and prosperity will not be with the 鈥渙ld broken book鈥�.

Tinubu reiterated this position while answering questions from a team of select media professionals during his maiden Presidential Media Chat December 23, 2024, in his Bourdillon residence in Ikoyi, of Lagos State.

The Nigerian leader asserted that there is no going back on the Tax Reforms Bills.

He stressed the overarching objective of the Tax Reforms Bills is to enhance fiscal sustainability while boosting economic growth in the West African country.

The Federal Government, the President noted, is much focused on simplifying Nigeria鈥檚 tax system, broadening the revenue base, and eliminating loopholes that have hindered effective taxation in the economy.

According to Tinubu, without improved revenue generation, achieving national development goals, such as infrastructure development, social welfare, and poverty alleviation would remain difficult.

Kindly Share This Story