The House of Representatives on Thursday adopted President Bola Tinubu’s four tax reform bills after a detailed clause-by-clause review.
The approval, which took place at the Committee of the Whole presided over by Speaker Abbas Tajudeen, sets the stage for the bills’ third reading.
The legislative process saw key modifications, including the rejection of a proposal for an incremental VAT rate increase.
Reps reject VAT increase
Lawmakers instead upheld the existing 7.5% VAT rate.
Another significant adjustment was in the VAT distribution formula, which will now be based on 50% equality, 20% population, and 30% consumption—aligning with recommendations from the Nigerian Governors’ Forum (NGF).
Among other changes, the House removed the term “ecclesiastical” from one of the clauses, replacing it with the more inclusive term “religious.”
Lawmakers also adopted provisions ensuring continued funding of TETFUND, NASENI, and NITDA from the development levies fund.
Additionally, the contentious clause on inheritance tax was amended to exclude taxation on inheritances acquired before dissolution.
The adopted clauses
Pulse Nigeria gathered that the committee handling the reports addressed initial concerns over some clauses, which had previously sparked tension.
This paved the way for a seamless adoption process.
The approved reports include key tax legislation such as the Nigeria Revenue Service Bill (HB.1757), which seeks to replace the Federal Inland Revenue Service Act, and the Nigeria Tax Act (HB.1759), which consolidates taxation laws.
Others include the Revenue Administration Coordination Bill (HB.1756) and the Joint Revenue Board and Tax Appeal Tribunal Bill (HB.1758).
With these approvals, the bills are set for third reading, moving them closer to full enactment into law.
