Tax reform: Reps adopt Finance committee report

The House of Representatives has adopted the report of its committee on finance on the much-debated tax reform bills.

Following the consideration of the bills, the Chairman of the House of Representatives Committee on Finance James Faleke said, “These bills underwent three full days of public hearings, with input from over 80 key stakeholders. Afterward, we held an eight-day retreat to debate each clause.”

“I am glad that House members recognised our thorough work and approved all our recommendations.”

With the adoption, the House is now poised to pass the bills. 

Several amendments were however made to accommodate all concerns as the bills were approved without any dissenting voice.

Part of the amendments include the retention of value added tax (VAT)at 7.5 percent, redefinition of the inheritance tax, and distribution of value added tax.

The House also approved the proposal for the military to be exempted from personal income tax.

“All the 36 states, including the Federal Capital Territory have their representatives in the sub-committee.”

“This is the first time such a report is getting hundred per cent approval by almost all members,” the Speaker of the House of Representatives Tajudeen Abbas said.

The adoption is coming after President Bola Tinubu in October 2024 asked the National Assembly to pass the tax reform bills. These bills include the NRS bill, the Nigeria tax bill, the Tax administration bill, and the joint revenue board establishment bill.

Some clauses in the bills had generated concerns in some sections of the country with many calling for their withdrawal. But President Tinubu insisted on the bills, arguing that Nigeria needs them to make progress.