Thursday, 08 May 2025 03:58

Senate passed two out of four tax reform bills. Here are the highlights

Rate this item
(0 votes)

The Senate has passed two out of four major tax reform bills proposed by President Bola Tinubu.

However, the upper chamber rejected a proposal to increase the value-added tax (VAT) to 10 percent, opting to retain the current rate at 7.5 percent.

The bill allows VAT input claims on fixed assets, overhead costs and administrative services.

The two bills passed are the Nigeria Revenue Service Establishment bill, which repeals the Federal Inland Revenue Service, and the Joint Revenue Board Establishment bill, which seeks to harmonise tax collection.

Two bills which the senate has scheduled for consideration and passage on Thursday are the Nigeria Tax Administration bill and the Nigeria Tax bill.

The passage of two bills on Wednesday followed a clause-by-clause consideration of the bills in the committee of the whole and a third reading on the floor of the senate.

President Tinubu transmitted the bills to the senate as part of efforts to modernise and overhaul the country’s tax framework.

Senate President Godswill Akpabio commended the progress and said the reforms would strengthen governance and improve revenue collection.

“These bills will add immense value to governance and transform how taxes are collected and shared in Nigeria,” Akpabio said.

He also said the senate is ready to extend its sitting to conclude work on the remaining bills.

“We are committed to concluding the outstanding bills tomorrow, even if we have to stay here until 10 pm,” he added.

Apart from the rejection of a proposal to increase VAT from 7.5 to 10 percent, Akpabio, who read the resolutions, said the senate also rejected the proposed phasing out of funding for some agencies.

The agencies include the Tertiary Education Trust Fund (TETFUND), the National Information Technology Development Agency (NITDA) and the National Agency for Science and Engineering Infrastructure (NASENI).

Instead, Akpabio said the red chamber introduced a 4 percent development levy to sustain funding for the agencies.

“These agencies of government are essential for human capital and overall economic development of the country,” he said.

“Phasing out their funding can lead to stagnation in education and the country losing out on technological evolutions and advancements.”

According to the bill, the development levy will be distributed as follows: TETFUND (50%), Nigerian Education Loan Fund (15%), NITDA (10%), NASENI (10%), National Cybersecurity Fund (5%) and Defence Security Fund (10%).

The company income tax rate is pegged at 30 percent.

Speaking during the plenary, Deputy Senate President Barau Jibrin praised the maturity displayed by lawmakers in resolving earlier disagreements.

“It is time to congratulate the entire senate and in particular, the committee on finance and the elders committee for the wisdom and leadership that have been shown in these bills,” he said.

“Initially, there were disagreements and there were rancours here and there. But the senate, standing on its position as the highest assembly in the land, decided to establish this committee, a committee of elders, to look at all those areas of contention and hear the views of religious leaders, regional organisations and other stakeholders.

“Now, thank God, the committee also in its wisdom sat with all, had a very robust public hearing and got to where we are now. And thank God, all these areas have been resolved.”

The four bills have already been passed by the house of representatives.

 

The Cable

June 24, 2025

Oil prices fall to over one-week lows as Trump announces Israel-Iran ceasefire

Oil prices tumbled on Tuesday to their lowest level in more than a week as…
June 25, 2025

Tinubu’s controversial biography reignites as Atiku disputes claim of Belarusian ‘schoolmate’

President Bola Tinubu’s already controversial academic record has come under renewed scrutiny following his recent…
June 23, 2025

The reason even successful people struggle to get out of bed some days

Sometimes after a long, productive day, I only have the energy to scroll on social…
June 21, 2025

Man convicted of posing as flight attendant to fly for free 120 times

A 35-year-old American man has been found guilty of impersonating a flight attendant at least…
June 25, 2025

Over 40 security operatives killed by bandits in Zamfara, Daily Trust reports

One of Nigeria’s most notorious bandit kingpins, Kachalla Bello Turji, reportedly killed more than 40…
June 25, 2025

Israel Vs Iran: Here’s what to know after Day 12

Fragile ceasefire holding, Trump envoy says peace talks with Iran 'promising' The ceasefire brokered by…
June 25, 2025

Tesla robotaxi launch: Why getting from dozens to millions of self-driving cars won't be easy

Tesla (TSLA.O) finally has a robotaxi. Now comes the hard part. The electric-vehicle maker deployed…
May 13, 2025

Nigeria's Flying Eagles qualify for World Cup after dramatic win over Senegal

Nigeria's U-20 national football team, the Flying Eagles, have secured their place at the 2025…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2025 NewsScroll. All rights reserved.