Reps pass landmark Tax Reform bills

In a significant step toward overhauling Nigeria’s tax system, the House of Representatives on Tuesday passed the four tax reform bills introduced by President Bola Tinubu in October 2024.

The legislative move marks a crucial milestone in the administration’s broader economic strategy aimed at boosting revenue generation and streamlining tax policies.

The passage comes just days after the House Committee on Finance reviewed and approved key recommendations, particularly on contentious provisions such as Value Added Tax (VAT) and inheritance tax, both of which have sparked debate among stakeholders.

With the House’s approval now secured, all eyes turn to the Senate, which is expected to deliberate on the bills before transmitting them to the President for his final assent.

The tax reform bills, a centerpiece of President Tinubu’s economic agenda, seek to address Nigeria’s longstanding challenges with tax compliance, collection efficiency, and revenue diversification. Given the country’s heavy reliance on oil revenues, the government has increasingly pushed for a more robust taxation framework to shore up public finances.

READ ALSO: Reps committee proposes key revisions to tax reform bills

While the House’s passage of the bills represents a breakthrough, the reforms remain a subject of intense debate. The proposed inheritance tax, in particular, has drawn mixed reactions, with some critics arguing it could discourage wealth accumulation, while supporters believe it will promote economic equity.

Similarly, discussions around VAT adjustments have reignited concerns from businesses and state governments over potential economic impacts, particularly on consumer prices and small enterprises.

As the legislative process nears its final stages, the Senate’s decision in the coming days will be pivotal. If passed, the bills will be sent to President Tinubu for assent, effectively setting the stage for a major transformation of Nigeria’s tax culture.

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