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…maintain 7.5% VAT, reject reintroduction of inheritance tax
By Christiana Ekpa
The House of Representatives on Tuesday passed the four tax reform bills which President Bola Tinubu transmitted to the National Assmebly in last quarter of 2024.
The House had last week Thursday adopted the report of its committee on finance on the proposed legislations – Nigeria Tax; Nigeria Tax Administration; Nigeria Revenue Service and Joint Revenue Board of Nigeria (Establishment) Bills, 2024.
The adopted report amended some controversial provisions in the tax bills to incorporate some concerns raised by stakeholders at a recently held public hearing.
Thus, the Value Added Tax (VAT) was retained at the current rate of 7.5% unlike the proposed increase in the Nigeria Tax Bill and stakeholders suggestion for a reduction to 5%.
For VAT purposes, a new basis for the distribution of the 55% and 35% respectively for State and Local Government allocation was introduced, while for states, 50% is to be distributed equally, 20% based on population, and 30% to be based on consumption.
After the adoption of the report last Thursday, the bills were slated for third (final) reading on Tuesday and passed.
The Nigeria Tax Bill, 2024 seeks to repeal certain tax Acts and enacts the Nigeria Tax Act to provide for taxation of income, transactions and instruments.
The Nigeria Tax Administration Bill, 2024 seeks to provide a uniform procedure for a consistent and efficient administration of tax laws in order to facilitate tax compliance by taxpayers and optimise tax revenue.
The Nigeria Revenue Service
(Establishment) Bill, 2024 seeks to repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007 and enact the Nigeria Revenue Service (Establishment) Act, 2024 to establish the Nigeria Revenue Service, Charged with Powers of Assessment, Collection of, and Accounting for Revenue Accruable to the Government of the Federation.
Joint Revenue Board of Nigeria (Establishment) Bill, 2024 seeks to establish the Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombuds, for the harmonisation, coordination and settlement of disputes arising from revenue administration in Nigeria.
