The four tax reform bills proposed by President Bola Tinubu has scaled second reading at the Senate.
The bills passed second reading after Opeyemi Bamidele, majority leader of the senate, led a debate on them on Thursday.
Bamidele said the bills would simplify the tax landscape, reduce the burden on small businesses, and streamline how taxes are collected.
“It will eliminate double taxation. In the area of tax exemption of the salaries below the minimum wage,” the senate leader said.
“It is proposed that the state governments share 55 percent of VAT from 15 percent. There is a reasonable effort to establish core tax statutes in the bill.”
The Four Tax Reform Bills listed on Thursday’s Order paper stood under the name of Senate Leader Opeyemi Bamidele, APC Ekiti Central are as follows;
A Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombud, for the harmonization, coordination and settlement of disputes arising from revenue administration in Nigeria and for related matters, 2024 (SB. 583);
A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007 and enact the Nigeria Revenue Service (Establishment) Act to Establish the Nigeria Revenue Service, charged with powers of assessment, collection of, and accounting for revenue accruable to the Government of the Federation;
A Bill for an Act to Provide for the assessment, collection of, and accounting for revenue accruing to the Federation, Federal, States and Local Governments; prescribe the powers and functions of tax authorities, and for related matters, 2024 (SB. 585) and a Bill for an Act to Repeal certain Acts on taxation and consolidate the legal frameworks relating to taxation and enact the Nigeria Tax Act to provide for taxation of income, transactions and instruments, and for related matters, 2024 (SB. 586)”.
Before its passage, Senator Ali Ndume APC Borno South rejected the bill citing insufficient consultations, issues in the Value Added Tax ( VAT ) and derivation.
He said: “I am not against reforms but my problem is the timing as it is today in Nigeria as we say I want to add to what Senator Seraike said.
“There is the issue of derivation because the Constitution has to be amended for some of the proposals of the Bill to be affected. This bill should be withdrawn. We work on it and submit it back after getting the buy-in of the Governors, National Executive Council and the Traditional Rulers.”
However, Senators Seraike Dickson and the Chairman Senate Committee on Finance supported the Bill to be read for a second reading.
The bill was therefore passed for a second reading by the Senate President Godswill Akpabio.