The Nigerian Senate has taken major decisions on President Bola Tinubu’s tax reform plan, passing two of the proposed tax bills. The bills passed are the Joint Revenue Board Establishment Bill (2025), which repeals the federal inland revenue service and the Nigeria Revenue Service Establishment Bill (2025), which seeks to harmonise tax collection. These are part of a broader set of four tax reform bills sent to the National Assembly by President Tinubu in October 2024....READ ORIGINAL & FULL CONTENT FROM SOURCE |
The bills have sparked debate, especially around how Value Added Tax (VAT) should be shared between the federal, state, and local governments.
According to the documents under review, VAT will remain at 7.5%, with the proposed sharing formula set at 10% for the Federal Government, 55% for states and the FCT, and 35% for local governments.
The other two bills—the Nigeria Tax Administration Bill and the Nigeria Tax Bill—are expected to be debated when the Senate reconvenes.
The tax reforms aim to modernise Nigeria’s tax system, increase government revenue, block financial leakages, and reduce duplication in the system.
The Senate is expected to continue deliberations on the remaining bills tomorrow.
“We are committed to concluding the outstanding bills tomorrow, even if we have to stay here until 10 p.m.,” Senate President Godswill Akpabio said.