The House of Representatives has approved the tax reform bills. VAT Sharing Formula: 50% to be distributed equally 20% to be distributed based on population 30% to be distributed based on consumption.
The current 7.5% VAT rate retained. Inheritance funds cannot be taxed
NAN reports thsatbthevThe adopted bills include the Nigerian Tax Bill, the Tax Administration Bill, the Revenue Tax Board Bill, and the Nigerian Revenue Service Establishment Bill.
“These bills underwent three full days of public hearings, with input from over 80 key stakeholders. Afterwards, we held an eight-day retreat to debate each clause”, said James Abiodun Faleke, the chairman of the House of Representatives Committee on Finance.
He assured Nigerians that the tax reform bills would produce widely acceptable laws.
“I am glad that House members recognised our thorough work and approved all our recommendations,” Faleke said.
He thanked fellow lawmakers and the House leadership for entrusting his committee with processing the tax bills and presenting them for consideration.
He commended President Bola Tinubu for prioritising tax law reforms, noting that some existing tax laws date back to 1959.
“We cannot continue using outdated tax laws that no longer meet our business, survival, and revenue needs,” he stressed.
Deputy Committee Chairman Saidu Abdullahi (APC-Niger) said no bill in the 10th Assembly had generated as much debate as the tax reform bills.
He praised Speaker Tajudeen Abbas for fostering stakeholder consensus and ensuring broad-based input into the legislative process.
Abdullahi highlighted that representatives from all geopolitical zones and regional thought leaders were involved, easing public concerns.
“The committee’s recommendations reflect the contributions of various stakeholders.
“These were never seen as perfect documents. The Executive made proposals, and the public hearing allowed Nigerians to refine them. Lawmakers have now endorsed the final version,” he added.
Also, Ikeagwuonu Ugochinyere (PDP-Imo) described the process as transparent, with consultants and the Executive making adjustments to reflect the public interest.
“Despite being in the opposition, we are proud of this historic moment. It will expand the tax net and increase government revenue.
“This reform will enhance tax collection efficiency while protecting small businesses. That is why we worked together to ensure its passage,” Ugochinyere said.
Benson Babajimi (APC-Lagos) said all stakeholder concerns, including inheritance tax, derivation, and VAT, were carefully considered.
“This is a great day for Nigeria. The House has approved the necessary reforms, and we now await Senate concurrence,” he said.
NAN
