President Bola Tinubu says the tax reform bills will not be withdrawn from the national assembly as recommended by the national economic council (NEC).
In a statement on Friday, Bayo Onanuga, special adviser to the president on information and strategy, said Tinubu received NEC’s recommendation, however, the president said the legislative process should continue.
On October 3, Tinubu asked the national assembly to consider and pass four tax reform bills.
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The bills include the Nigeria tax bill, the tax administration bill, and the joint revenue board establishment bill.
Tinubu is also seeking to repeal the law establishing the Federal Inland Revenue Service (FIRS) and replace it with the Nigeria Revenue Service.
Reacting to the development, the Northern States Governors Forum (NSGF) opposed the proposed bills, following a joint meeting with the northern traditional rulers council at the Kaduna government house on October 28.
The governors asked the national assembly to reject any legislation that may harm the region’s interests, calling for equitable and fair implementation of national policies and programmes to prevent marginalisation of any geopolitical zone.
Following the opposition from the northern governors, the presidency on Thursday assured them that the proposed laws were not recommended by Tinubu to disadvantage any part of the country as they were designed to improve the lives of Nigerians and optimise existing tax frameworks.
On the same day, NEC asked Tinubu to withdraw the tax reform bills to give room for consultations.
However, Onanuga said Tinubu urged the NEC to allow the process to take its full course.
“President Tinubu commends the National Economic Council members, especially Vice President Kashim Shettima and the 36 State Governors, for their advice,” Onanuga said.
“He believes that the legislative process, which has already begun, provides an opportunity for inputs and necessary changes without withdrawing the bills from the National Assembly.”
Tinubu also welcomed further consultations and engagement with key stakeholders to address any reservations about the bills while the national assembly considers them for passage.
“When President Tinubu set up the Presidential Committee on Tax and Fiscal Policy Reform in August 2023, he had only one objective: to reposition the economy for better productivity and efficiency and make the operating environment for investment and businesses more conducive. This objective remains more critical even today than ever before,” he said.
“The committee worked for over a year and received inputs from various segments of society across the geopolitical zones, including trade associations, professional bodies, different Ministries and Government Agencies, Governors, traders, students, business owners, and the organised private sector.
“The tax reform bills that emerged were distilled from the extensive work of the Presidential Committee.”
MAJOR HIGHLIGHTS OF THE TAX REFORM BILLS
The special adviser said the tax reform bills aim to streamline Nigeria’s tax administration processes, completely overhaul the nation’s tax operations, and align them with global best practices.
Highlighting the purpose of the bills, Onanuga said the Nigeria tax bill “seeks to eliminate multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide”.
“The Nigeria Tax Administration Bill (NTAB): This Bill proposes new rules governing the administration of all taxes in the country. Its objective is to harmonise tax administrative processes across federal, state and local jurisdictions to ease taxpayers’ compliance and enhance the revenue for all tiers of government,” he said.
“The Nigeria Revenue Service (Establishment) Bill: The Bill seeks to re-establish the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect its mandate as the revenue agency for the entire federation, not just the Federal Government.
“The Joint Revenue Board Establishment Bill: This Bill proposes creating a Joint Revenue Board to replace the Joint Tax Board, covering federal and all state tax authorities. The fourth bill will also establish the Office of Tax Ombudsman under the Joint Revenue Board, protecting taxpayers’ interests and facilitating dispute resolution.”
He said the bills’ overarching objective is to effectively coordinate federal, state, and local tax authorities, thereby eliminating the overlapping responsibilities, confusion, and inefficiency that have plagued tax administration in Nigeria for decades.
According to Onanuga, under existing laws, taxes like company income tax (CIT), personal income tax (PIT), capital gains tax (CGT), petroleum profits tax (PPT), tertiary education tax (TET), value-added tax (VAT), and other taxing provisions in numerous laws are administered separately, with individual legislative frameworks.
The special adviser said the proposed reforms seek to consolidate the numerous taxes, integrating CIT, PIT, CGT, VAT, PPT, and excise duties into a unified structure to reduce administrative fragmentation.
“While there may be differences in approach or specific provisions of the new tax bills, what is not in contention is the need to review our tax laws and how we administer them to serve our overall national development agenda,” he added.
Onanuga assured that Tinubu will continue to respect and welcome the advice and recommendations of the NEC.
TheCable
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