President Bola Ahmed Tinubu has dismissed a request from Vice President Kashim Shettima’s National Economic Council to halt the proposed Tax Bills currently under consideration by the National Assembly.
The tax legislation has sparked widespread criticism, particularly from Northern Governors who were among the first to voice their opposition.
This sentiment was echoed by the Northern socio-cultural group, the Arewa Consultative Forum (ACF), which argued that the tax bills would put the North at a disadvantage.
Prominent Senator Ali Ndume also expressed his disapproval, asserting that the proposed changes would exacerbate the financial struggles of poorer Nigerians.
Despite this backlash, President Tinubu emphasised on Friday that the National Assembly should proceed with deliberations on the tax bills.
According to a statement from Presidential Spokesman Bayo Onanuga, when President Tinubu established the Presidential Committee on Tax and Fiscal Policy Reform in August 2023, his primary goal was to enhance the economy’s productivity and efficiency while creating a more favorable environment for investment and business. He reiterated that this focus is more crucial now than ever.
“The committee engaged for over a year, gathering insights from various stakeholders across the country, including trade associations, professional organizations, government agencies, governors, students, and business leaders.
“The resulting tax reform bills are designed to revamp Nigeria’s tax administration, aligning it with global best practices. Here are the key elements of the four proposed bills:
1. The Nigeria Tax Bill: Aims to eliminate multiple taxation and enhance the competitiveness of Nigeria’s economy by simplifying tax obligations for businesses and individuals.
2. The Nigeria Tax Administration Bill (NTAB): Introduces new regulations for tax administration in the country, with the goal of harmonizing processes at federal, state, and local levels to improve compliance and increase revenue.
3. The Nigeria Revenue Service (Establishment) Bill: Seeks to rebrand the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to reflect its broader role as the revenue agency for the entire federation.
4. The Joint Revenue Board Establishment Bill: Proposes the creation of a Joint Revenue Board to replace the current Joint Tax Board, encompassing federal and state tax authorities. This bill will also establish an Office of Tax Ombudsman to protect taxpayers’ interests and facilitate dispute resolution,” Onanuga said.
According to him, “The overarching aim of these bills is to streamline the coordination among federal, state, and local tax authorities, addressing the longstanding issues of overlapping responsibilities and inefficiencies in Nigeria’s tax administration.
“Currently, various taxes, including Company Income Tax (CIT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Petroleum Profits Tax (PPT), Tertiary Education Tax (TET), and Value-Added Tax (VAT), are managed separately under distinct legislative frameworks. The proposed reforms aim to consolidate these taxes into a unified structure to reduce administrative complexity.
“While there may be differing opinions on specific aspects of the new tax bills, there is a consensus on the necessity of reviewing and improving Nigeria’s tax laws to support the nation’s development goals,” he said.
He said President Tinubu remains open to receiving advice and recommendations on this matter as discussions proceed.
