The Senate has commenced debate on a series of Tax Reform Bills aimed at overhauling Nigeria’s tax system.
The bills under consideration include the Nigeria Tax Bill 2024, Nigeria Tax Administration Bill 2024, Nigeria Revenue Service (Establishment) Bill 2024, and the Joint Revenue Board (Establishment) Bill 2024.
Deliberations began after a closed-door session that lasted for about an hour.
Presenting the bills, Senator Sani Musa, Chairman of the Senate Committee on Finance, stated that the committee had thoroughly scrutinised the proposals as mandated by the Senate and held public hearings to allow for stakeholder input.
He disclosed that over 64 organisations, including Civil Society Organisations (CSOs), participated in the hearings, with a majority expressing support for the proposed reforms.
On the Value-Added Tax (VAT) sharing formula, the committee recommended an allocation of 10% to the federal government, 55% to state governments and the Federal Capital Territory, and 35% to local governments.
Musa also revealed that the committee recommended retaining 10% funding each for TETFund, NASENI, and NITDA. Additionally, it proposed 5% allocation for cybersecurity funding and 10% for security and defense.
He urged the Senate to pass the bills, arguing that they would enhance economic growth, simplify tax compliance, and boost investor confidence.
Senator Abdullahi Yahaya, representing Kebbi North and a member of the Senate Special Committee on Tax Reform, expressed support for the bills.
He informed the chamber that the special committee had submitted its report to the Finance Committee, and its recommendations were incorporated into the amendments.
