Despite Multiple Taxes, Tinubu Sends Bill to Establish Nigeria Revenue Service, Other Tax Reforms to National Assembly

Oluwasegun SanusiOctober 3, 20241 Mins read812

National Assembly. Photocredit: Tope Brown

President Bola Tinubu has sent four tax reform bills to the National Assembly for deliberation. The bills were introduced during separate plenary sessions of both legislative chambers, with Senate President Godswill Akpabio and Speaker of the House of Representatives Tajudeen Abbas reading Tinubu’s letter of submission.

In his letter, Tinubu emphasised that the proposed reforms are aligned with his administration’s broader economic development goals.

The key proposals include the Nigeria Tax Bill 2024, which aims to establish a comprehensive fiscal framework for tax regulation across the country.

The Tax Administration Bill seeks to streamline tax management by providing a clear legal structure for overseeing taxes, reducing disputes, and improving overall efficiency in Nigeria’s tax system.

Another component of the reform is the Nigeria Revenue Service Establishment Bill, which proposes to repeal the existing Federal Inland Revenue Service (FIRS) Act. In its place, the bill would establish a new Nigeria Revenue Service, tasked with strengthening revenue collection processes.

The fourth proposed bill, the Joint Revenue Board Establishment Bill, aims to create a tax tribunal and a tax ombudsman to handle tax disputes and ensure proper accountability in tax-related matters. This board would serve as a forum for resolving tax issues outside of the traditional court system, ensuring that disputes are handled more efficiently.

It will be recalled that on 22nd of July 2024, the Finance Minister Wale Edun and Federal Inland Revenue Service (FIRS) Chairman, Zacch Adedeji appeared before the Senate Committee on Finance to advocate for an amendment to the Finance Act 2023.

The proposed amendment includes a controversial provision to impose a 50 per cent tax on foreign exchange gains reported by commercial banks in Nigeria for the 2023 fiscal year.

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