The tax reform bills in Nigeria are moving forward, despite facing opposition from various stakeholders, particularly regarding the proposed phasing out of key agencies. The bills, which include the Nigeria Tax Bill 2024, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill, aim to harmonize the country's tax laws, streamline administrative processes, and expand the tax base.
The Federal Inland Revenue Service (FIRS) Chairman, Zack Adedeji, has clarified that the tax reform bills do not intend to increase taxes or introduce new ones. Instead, they aim to organize the fiscal framework, regulate cryptocurrency, and improve transparency and integrity in revenue collection.
However, some stakeholders, including northern state governors, have expressed concerns about the proposed reforms, particularly the phasing out of key agencies.
The Presidency has since debunked claims that the tax reform bills recommend the dissolution of key agencies.
The proposed tax reforms are expected to reduce multiple taxation and collection by informal agents, also known as "agberos".
The bills have passed the second reading at the House of Representatives and are expected to proceed to a public hearing for further stakeholder input.
The bills, submitted by President Bola Tinubu, aim to overhaul the country's tax collection and administration systems, creating a more equitable and efficient taxation framework.
However, the northern governors are opposed to the proposed VAT revenue-sharing model, which they feel disproportionately disadvantages their states.
Despite the pushback, the bills have passed the second reading at the House of Representatives.
The legislation is considered crucial for Nigeria's economic growth, as it seeks to address longstanding fiscal challenges and promote economic self-reliance among states.
President Tinubu has stood firm on the tax reform bills, rejecting the National Economic Council's (NEC) recommendation to withdraw them from the National Assembly.
The fate of the bills remains uncertain, but their passage could mark a significant milestone in Nigeria's efforts to reform its tax system.
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