The House of Representatives has passed a consolidated package of tax reform bills for second reading after an extensive debate on their general principles.
The four bills originally submitted by President Bola Ahmed Tinubu last year were merged into a single package following a motion by House Leader Prof Julius Ihonvbere and approval by Speaker Abbas Tajudeen.
The package includes legislation to reform revenue collection across federal, state, and local governments to establish the Nigeria Revenue Service by repealing the previous law to create a Joint Revenue Board along with a Tax Appeal Tribunal and Tax Ombud and to consolidate the legal framework for taxation under a new Nigeria Tax Act.
Lawmakers stressed the urgent need to modernize Nigeria’s outdated tax system, with proponents arguing that the reforms would harmonize taxes, reduce PAYE, exempt essential commodities from VAT, and provide incentives for low-income earners.
The motion passed overwhelmingly by voice vote, paving the way for further legislative scrutiny of the tax reform package.
