President Tinubu Welcomes NEC’s Recommendation for Further Consultation on Tax Reform Bills
In a recent development, President Bola Tinubu has responded positively to the recommendation by the National Economic Council (NEC) to reconsider certain tax reform bills currently under review by the National Assembly. The NEC, chaired by Vice President Kashim Shettima and consisting of Nigeria’s 36 state governors, advised that these bills be temporarily withdrawn to allow for broader stakeholder consultation.
President Tinubu praised the NEC’s proactive approach, acknowledging that the legislative process could incorporate additional inputs without necessitating a full withdrawal of the bills. He expressed his commitment to welcoming further consultations and engagements with key stakeholders to ensure all concerns are addressed as the National Assembly continues its deliberations.
The tax reform initiative is rooted in President Tinubu’s vision to revamp Nigeria’s fiscal landscape, an objective underscored by the establishment of the Presidential Committee on Tax and Fiscal Policy Reform in August 2023. The committee, which worked for over a year, conducted consultations across Nigeria’s geopolitical zones, receiving feedback from trade associations, professional organizations, government ministries, business owners, students, and the private sector. These inputs informed the development of four key bills designed to overhaul Nigeria’s tax system and improve the business environment.
Highlights of the Proposed Tax Reform Bills
- Nigeria Tax Bill: This bill seeks to simplify tax obligations and eliminate multiple taxation to boost Nigeria’s competitiveness and ease of doing business.
- Nigeria Tax Administration Bill (NTAB): Aimed at harmonizing tax administration across federal, state, and local levels, this bill proposes unified rules to streamline processes and improve taxpayer compliance.
- Nigeria Revenue Service (Establishment) Bill: This bill proposes rebranding the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS), reinforcing its mandate as the primary revenue agency for the federation.
- Joint Revenue Board Establishment Bill: This bill proposes the creation of a Joint Revenue Board to replace the existing Joint Tax Board. It also includes establishing an Office of Tax Ombudsman to protect taxpayer interests and facilitate dispute resolution.
The overarching goal of these reforms is to coordinate tax administration among federal, state, and local authorities, reducing redundancies and inefficiencies. Currently, taxes like Company Income Tax (CIT), Personal Income Tax (PIT), Value-Added Tax (VAT), and Petroleum Profits Tax (PPT) operate under separate frameworks, creating administrative challenges. The proposed bills aim to unify these taxes into a streamlined structure, enhancing transparency and efficiency in tax collection.
President Tinubu reiterated his respect for the NEC’s advisory role on economic matters, signaling his readiness to consider further amendments to the tax bills. As the National Assembly deliberates on the proposals, the administration’s priority remains to foster a favorable business environment and make Nigeria’s tax system more efficient and competitive on the global stage.
This move is expected to enhance Nigeria’s fiscal stability and create a more transparent, equitable, and growth-oriented tax structure, aligning with global best practices and supporting economic development across the country.
