By Chukwudi Obasi, Abuja
The House of Representatives passed the four tax reform bills sent to the National Assembly in October 2024 for a third reading despite opposition from key stakeholders.
The passage followed the report’s consideration and approval by the House Committee on Finance, which reviewed the bills alongside submissions from Nigerians. The proposed reforms had sparked widespread controversy, with opposition from Northern leaders, the Nigeria Governors’ Forum, and other interest groups who objected to specific provisions.
During the plenary, House Leader Julius Ihonvbere moved for the bills to be read for the third time. The bills include one that provides for the assessment, collection, and accounting of revenue accruing to the federation, states, and local governments, as well as another that repeals the Federal Inland Revenue Service (Establishment) Act, No.13, 2007, replacing it with the Nigeria Revenue Service, which will be responsible for revenue collection and accounting at the federal level.
Another bill seeks to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombud to harmonize, coordinate, and settle disputes arising from revenue administration in Nigeria.
The fourth bill repeals specific taxation laws and consolidates the legal framework relating to taxation by enacting the Nigeria Tax Act, which provides for the taxation of income, transactions, and financial instruments.
The four bills were passed unanimously and will now be transmitted to the President for assent after Senate approval and possible harmonisation of both chambers’ versions.
Despite the final passage, the bills faced significant opposition, particularly from Northern lawmakers, who argued that some provisions were not in their constituents’ best interests.
To address concerns, Speaker Abbas Tajudeen facilitated a series of engagements, including a three-day public hearing and an eight-day retreat. These allowed lawmakers to refine and incorporate public input before finalizing the report.
