Tinubu Urges NEC To Send Inputs On Tax Reforms To NASS

President Bola Tinubu has foreclosed the withdrawal of the Tax reform bills from the National Assembly and instead, urged Vice President Kashim Shettima and the 36 state governors to give their input on the bills during the lawmakers’ public hearing.

President Tinubu’s position was contained in a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, asking the NEC members to allow the bills to go through a public hearing to be conducted by the National Assembly and make their input there.

Shettima and the governors after the meeting of the National Economic Council, echoed the request of the Northern Governors and advised Tinubu to withdraw the tax reform bill from the National Assembly.

President Tinubu commended the National Economic Council members, especially Vice President Kashim Shettima and the 36 State Governors, for their advice but noted that the legislative process, which has already begun, provides an opportunity for inputs and necessary changes without withdrawing the bills from the National Assembly.

While urging the NEC to allow the process to take its full course, President Tinubu welcomes further consultations and engagement with key stakeholders to address any reservations about the bills while the National Assembly considers them for passage.

President Tinubu set up the Presidential Committee on Tax and Fiscal Policy Reform in August 2023 to reposition the economy for better productivity and efficiency and make the operating environment for investment and businesses more conducive. This objective remains more critical even today than ever before.

The Committee worked for over a year and received inputs from various segments of society across the geopolitical zones, including trade associations, professional bodies, different Ministries and Government Agencies, Governors, traders, students, business owners, and the Organised private sector and the resultant tax reform bills were distilled from the extensive work of the Presidential Committee.

The four tax bills aim to streamline Nigeria’s tax administration processes, completely overhaul the nation’s tax operations, and align them with global best practices.

They are the Nigeria Tax Bill which seeks to eliminate multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide; the Nigeria Tax Administration Bill (NTAB) proposing new rules on the administration of all taxes in the country with objective to harmonise tax administrative processes across federal, state and local jurisdictions to ease taxpayers’ compliance and enhance the revenue for all tiers of government.

Others are the Nigeria Revenue Service (Establishment) Bill which seeks to re-establish the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect its mandate as the revenue agency for the entire federation, not just the Federal Government, and the Joint Revenue Board Establishment Bill, proposing a creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all state tax authorities. The fourth bill will also establish the Office of Tax Ombudsman under the Joint Revenue Board, protecting taxpayers’ interests and facilitating dispute resolution.

Onanuga stated that the bills’ overarching objective is to effectively coordinate federal, state, and local tax authorities, thereby eliminating the overlapping responsibilities, confusion, and inefficiency that have plagued tax administration in Nigeria for decades.

Under existing laws, taxes like Company Income Tax (CIT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Petroleum Profits Tax (PPT), Tertiary Education Tax (TET), Value-Added Tax (VAT), and other taxing provisions in numerous laws are administered separately, with individual legislative frameworks.

The proposed reforms seek to consolidate these numerous taxes, integrating CIT, PIT, CGT, VAT, PPT, and excise duties into a unified structure to reduce administrative fragmentation.