The House of Representatives on Wednesday passed the tax reform bills for a second reading following an extensive and robust debate on the general principles of the legislation by lawmakers.
The House had earlier consolidated the four tax reform bills sent to the House by President Bola Ahmed Tinubu last year into one before beginning the debate on the general principles.
The consolidation of the bills followed a motion by the House Leader, Prof Julius Ihonvbere, following the leave granted by the Speaker, Abbas Tajudeen.
The bills consolidated include: “A Bill For an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States and Local Governments; Prescribe the Powers and Functions of Tax Authorities, and for Related Matters (HB.1756); A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007 and Enact the Nigeria Revenue Service (Establishment) Bill to Establish Nigeria Revenue Service, charged with Powers of Assessment, Collection of, and Accounting for Revenue Accruable to the Government of the Federation and for Related Matters (HB.1757).
Others include: “A Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombud, for the Harmonisation, Coordination and Settlement of Disputes arising from Revenue
Administration in Nigeria and for Related Matters (HB.1758) and A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks Relating to Taxation and Enact the Nigeria Tax Act to Provide For Taxation of Income, Transactions and
Instruments, and for Related Matters (HB.1759).
The House Leader, Prof Julius Ihonvbere, led the lead debate on the consolidated tax reform, stressing the necessity of overhauling the country’s tax reform which he described as obsolete.
Ihonvbere, while speaking on the general principles of the bills said the legislations, thanked the Nigerian Governors’ Forum for their valuable inputs in retooling the aspect of the VAT sharing formula which helped in dousing the earlier concerns that trailed the tax reform bills.
He said the bill which aims to modernise the tax reform system will empower citizens and enhance inclusive growth.
Ihonvbere said the tax reforms will benefit Nigerians if passed as it proposes harmonisation of multiple taxes, reduced PAYE tax, provided zero VAT on food, healthcare, education etc and also provided incentives for low income employees.
In their contributions to the debate on the general principles of the bills, the majority of the lawmakers spoke in support of passage of the bill for second reading.
In his contribution to the debate, Rep Bamidele Salam (PDP, Osun), expressed support the bill, saying, it will ensure more resources accrue to the subnational government to be able to provide the needed development.
He described the current Nigerian tax administration system as obsolete and duplicatory in nature leading to stunted growth and discouraging to investors.
Salam, however add that the paramount consideration in tax reforms should focus more on wellbeing and welfare of the Nigerian people.
In his contribution, Rep Sada Soli, said the issue of fairness and reasonability must be put into consideration in the enactment of the tax reforms.
He raised concerns over several inconsistencies in a number of the clauses in the tax reform bills which he said, the committee working on the bills must look into and remove.
Soli also expressed worries over the ambiguity in some clauses of the bills, which he said, will make the legislation open to abuse and misinterpretation.
Rep Ademorin Kuye while supporting the bill, said the need for revenue generation to meet the country’s infrastructural deficit cannot be overemphasised, hence, the tax reforms should be supported.
Other lawmakers such as George Odinobi, Makki Yalleman, Cyril Hart, Igariwey Iduma and Mariam Onuoha, among others, in their various contributions, supported the bills to be passed for second reading.
After an extensive deliberation, the consolidated bills were overwhelmingly passed for a second reading after it was put to a voice vote by the Speaker, Abbas Tajudeen.
