The House of Representatives has passed the consolidated tax reform bills for a second reading following extensive debate on their general principles.
The four bills—Nigeria Tax Bill 2024, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill—were initially submitted to the House by President Bola Tinubu last year. They were later merged into a single bill for streamlined consideration.
The House opened debate on the general principles of the contentious bills.
Leading the debate, House Leader Prof. Julius Ihonvbere emphasised the urgent need to overhaul Nigeria’s outdated tax system.
The House of Representatives has today passed the four tax reform bills for Second Reading and referred them to the Finance Committee of the House for further legislative work, including public hearing.
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Lawmakers widely supported the bills, highlighting their potential to harmonise tax administration, eliminate multiple taxation, expand the tax base, and establish an ombudsman for resolving tax disputes.
However, some raised concerns about inconsistencies and ambiguities in certain clauses, warning they could lead to misinterpretation or abuse, and urged the committee to address these issues.
Lawmakers stressed the urgent need to modernise Nigeria’s outdated tax system, with proponents arguing that the reforms would harmonise taxes, reduce PAYE, exempt essential commodities from VAT, and provide incentives for low-income earners.
After over four hours of deliberations on the bill by lawmakers, the Speaker of the House, Mr Tajudeen Abbas, ruled that the bill be referred to the Committee on Finance for further legislative action.
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