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The House of Representatives has approved major amendments to four tax reform bills proposed by President Bola Tinubu. These bills—Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill—aim to overhaul the country’s taxation system.
Key Amendments
- VAT Distribution: 50% equality, 20% population, 30% consumption. Revenue allocation: 10% Federal Government, 55% States, 35% Local Governments.
- VAT Rate: Proposal to increase VAT from 7.5% to 15% by 2030 was rejected.
- Tax Waivers: Exemptions must now be approved by the National or State Assemblies, limiting presidential and gubernatorial powers.
- Inheritance Tax: Income from inherited assets before distribution will not be taxed.
- Anti-Corruption Measures: Fines up to ₦2 million and three-year jail terms for bribing tax officials.
- Revenue Deductions: The Accountant-General now requires legislative approval for unremitted revenue deductions.
- Military Salaries: Exempted from income tax to honor military personnel.
- Development Agency Funding: Continuous funding for TETFUND, NASENI, and NITDA from development levies.
The bills now move to the Senate for approval. If passed, these reforms will enhance transparency and efficiency in Nigeria’s tax system.
