President Bola Ahmed Tinubu has called on Nigeria’s Economic Council (NEC) to support the progression of the proposed tax reform bills through the legislative process, while also allowing council members to contribute their insights during public hearings.
He expressed appreciation to the council members, particularly Vice President Kashim Shettima and the 36 State Governors, for their valuable recommendations. President Tinubu emphasised that the ongoing legislative process is an opportunity for necessary input and modifications without the need to withdraw the bills from the National Assembly.
Additionally, he encouraged the NEC to let the process continue fully, welcoming further discussions and engagement with key stakeholders to address any concerns regarding the bills as they are examined for passage by the National Assembly.
The Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga who made the President’s response known stated that the sole objective of setting up the Presidential Committee on Tax and Fiscal Policy Reform is to reposition the economy for better productivity and efficiency and make the operating environment for investment and businesses more conducive.
He added that the objective remains more critical than ever.
Mr Onanuga further explained that 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.
He added that the overarching objective of the bill 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.
The Presidential Spokesperson further stated that 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 the country’s tax laws and h
Its administration ensures the reforms serve the overall national development agenda.
Mr Onanuga added that President Tinubu will continue to respect and welcome the advice and recommendations of the National Economic Council, a body he described as an essential constitutional organ of government on economic matters.
According to the Presidential aide, “the Committee worked for over a year and received inputs from various segments of society across the geopolitical zones, including trade associations, professional bodies, different Ministries and Government Agencies, 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 Special Adviser to the President on Information and Strategy highlighted other major benefits of the tax reform bills to include; “elimination of multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide.
“The Nigeria Tax Administration Bill (NTAB): This Bill 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) Bill: The Bill 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.
On the Joint Revenue Board Establishment Bill, Mr Onanuga stated that the bill proposes to create 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.
Existing Tax Laws
Under existing laws, the Presidential aide explained that taxes like Company Income Tax (CIT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Petroleum Profits Tax (PPT), Tertiary Education Tax (TET), Value-Added Tax (VAT), and other taxing provisions in numerous laws are administered separately, with individual legislative frameworks.
The proposed reforms seek to consolidate these numerous taxes, integrating CIT, PIT, CGT, VAT, PPT, and excise duties into a unified structure to reduce administrative fragmentation.
It would be recall that the National Economic Council on Thursday advised President Bola Tinubu to withdraw tax reform bills for broader consultations among stakeholders.
Dominica Nwabufo
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