Proposed tax reform bills at the National Assembly
will not be withdrawn, says President Bola Tinubu.
The News Agency of Nigeria (NAN) reports that the
National Economic Council (NEC) on Thursday called for the bills’ withdrawal
for further consultations.
The President, in a statement on Friday by Mr Bayo
Onanuga, his Special Adviser, Information and Strategy, however, urged that the
legislative process be allowed to take its course.
Tinubu said the legislative process, which had already
begun, provided an opportunity for inputs and necessary changes without
withdrawing the bills from the National Assembly.
He welcomed further consultations and engagement with
key stakeholders to address any reservations about the bills while the National
Assembly considered them for passage.
The statement read: “When President Tinubu set up the
Presidential Committee on Tax and Fiscal Policy Reform in August 2023, he had
only one objective.
“This is 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.”
The committee worked for over a year and received
inputs from various segments of society across the geopolitical zones.
Inputs were received from trade associations,
professional bodies, various MDAs, 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.
“The tax bills before the National Assembly aim to
streamline Nigeria’s tax administration processes, completely overhaul the
nation’s tax operations, and align them with global best practices,” the
statement read in part.
The tax reform bills include the Nigeria Tax Bill,
which seeks to eliminate multiple taxation and make Nigeria’s economy more
competitive by simplifying tax obligations for businesses and individuals
nationwide.
NAN also reports that the Nigeria Tax Administration
Bill (NTAB) 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.
The Nigeria Revenue Service (Establishment) 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 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.
The statement read: “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.
“Under existing laws, taxes like Company Income Tax,
Personal Income Tax, Capital Gains Tax, Petroleum Profits Tax, Tertiary
Education Tax, Value-Added and other taxing provisions in numerous laws are
administered separately, with individual legislative frameworks.”
The proposed reforms seek to consolidate these
numerous taxes, integrating them 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.
“President Tinubu will continue to respect and welcome
the advice and recommendations of the National Economic Council, an essential
constitutional organ of government on economic matters,” the statement read.
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