The four tax reform bills submitted to the National Assembly in 2024 by President Bola Tinubu have successfully passed their second reading in the House of Representatives.
The bills progressed during Wednesday’s plenary, six months after their transmission, following recommendations of the House Committee on Fiscal Policy and Tax Reforms, led by Rep. Taiwo Oyedele.
The bills under consideration include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
Having cleared the second reading, they will now move to the public hearing stage for further scrutiny.
The proposed tax reforms have sparked intense debate, with strong opposition coming from various quarters, including northern governors and opposition politicians, who have called for their withdrawal.
Critics argue that the bills could have significant financial and administrative implications.
During the plenary, lawmakers largely expressed support for the bills. However, Rep. Sada Soli raised concerns that certain provisions might conflict with the 1999 Constitution, particularly regarding revenue derivation.
He stressed the need for clear definitions to prevent any ambiguity.
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Some lawmakers also pointed out that the bills seek to amend 40 existing laws and requested that the laws be formally presented to the National Assembly for review.
Additionally, concerns were raised about the issue of multiple taxation in property transactions, as the proposed law mandates both buyers and sellers to pay tax.
Rep. Soli expressed confidence that the committee reviewing the bills will address these issues before the final passage of the four bills.
With the bills advancing to the next stage, the public hearing is expected to generate further debate, as stakeholders weigh in on the potential impact of the proposed tax reforms.