The National Assembly have adopted the Conference Committee report on the Tax Reform Bills following the harmonisation of the versions of the bills passed by both chambers.
The bills following the adoption are not set for transmission to President Bola Tinubu for his assent.
At plenary on Wednesday, the House of Representatives considered the report of the conference committee, which harmonised the bills.
The reports were presented by the Sani Musa, the Chairman of the Conference Committee who also chairs the Finance Committee in the Red Chamber, James Faleke, the Chairman of the House Committee on Finance, (APC, Lagos), who headed the House team to the conference committee, presented the conference report to the House for consideration.
He said the conference committee met and agreed on all areas of difference in the version passed by both chambers of the National Assembly.
The lawmakers explained that there were 45 areas of difference in the Nigeria Tax Administration Bill, 12 areas of difference in the Nigeria Revenue Service Bill, 9 areas of difference in the Joint Board Bill and 46 areas of difference in the Nigeria Tax Bill, adding that the differences were agreed upon and resolved by the committee.
While the conference committee agreed to retain the Senate version in some of the clauses, they also retained the House version in some others, making amendments in a few others.
The conference committee agreed to the imposition of a 4 per cent development levy on assessable profit of all companies chargeable to tax under chapters two and three, other than small companies and non-resident companies.
They also agreed that the levy shall be collected by the Nigeria Revenue Service and paid into a special account created for that purpose.
In the sharing formula, the committee agreed that 50 percent of the tax will go to Tertiary Education Trust Fund, 15 percent to the Education Loan Fund (up from 3 percent agreed by the House), 8 percent to Nigeria Information Technology Development Fund (up from 5 and 10 agreed by both chambers).
Also, the National Agency for Science and Engineering Infrastructure is to get 8 percent (down from. 10 percent earlier agreed by both chambers), the National Board for Technology Incubation is to get 4 percent from the fund, defence and security infrastructure is to get 10 percent while cyber security fund will get 5 percent.
The Social Security fund, the Nigeria Police Trust Fund, National Sports Development Fund were excluded from the list of beneficiaries passed by the House of Representatives.
The committee, however, adopted a new clause 158, which imposes a 5 per cent surcharge on chargeable fossil fuel products provided or produced in Nigeria and shall be collected at the time a chargeable transaction occurs.
