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Tinubu Rejects NEC’s Call To Withdraw Tax Reform Bill

Published

2 months ago

Nov 1, 2024.

President Bola Tinubu has reiterated his commitment to the Tax Reform Bill currently under consideration in the National Assembly, firmly rejecting the National Economic Council’s (NEC) request to withdraw the bill for additional consultations.

The NEC, led by Vice President Kashim Shettima and composed of the 36 state governors, had advised the President to pause the bill’s progress, urging further stakeholder engagement. However, President Tinubu emphasized that the legislative process itself provides ample opportunity for necessary modifications.

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EKO HOT BLOG reports that in a statement issued on Friday by Bayo Onanuga, the President’s Special Adviser on Information and Publicity, Tinubu underscored the importance of allowing the legislative procedure to run its full course.

He welcomed additional consultations with relevant parties but stressed that the bill should remain in the National Assembly for timely consideration and potential passage.

“When President Tinubu set up the Presidential Committee on Tax and Fiscal Policy Reform in August 2023, his sole aim was to enhance Nigeria’s economic productivity and efficiency, creating a more favorable environment for investment and business,” the statement read. “This goal remains crucial, now more than ever.”

The tax reform bills currently before the National Assembly, the statement added, are the product of more than a year of extensive work by the Presidential Committee, incorporating feedback from various sectors nationwide, including trade associations, government ministries, and the organized private sector.

Key Aspects of the Proposed Tax Reform Bills

The Nigeria Tax Bill: This bill seeks to simplify tax obligations by eliminating multiple taxation, aiming to make Nigeria’s economy more competitive for both businesses and individuals.
The Nigeria Tax Administration Bill (NTAB): Designed to streamline tax administration across federal, state, and local levels, this bill aims to improve compliance and enhance revenue generation by unifying tax processes nationwide.
The Nigeria Revenue Service (Establishment) Bill: This bill proposes rebranding the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS), emphasizing its role as the revenue agency for the entire federation.
The Joint Revenue Board Establishment Bill: This bill seeks to establish a Joint Revenue Board to replace the current Joint Tax Board, covering federal and state tax authorities, and includes the creation of a Tax Ombudsman Office to protect taxpayer rights and facilitate dispute resolution.

The overarching objective of these bills, Onanuga’s statement noted, is to harmonize tax operations across the three levels of government, eliminating the longstanding inefficiencies, confusion, and overlapping responsibilities in Nigeria’s tax system.

Tinubu NEC Tax Reform

Under the current tax framework, various taxes such as Company Income Tax (CIT), Personal Income Tax (PIT), and Value-Added Tax (VAT) are governed separately, creating a fragmented system.

The proposed reforms aim to consolidate these into a unified structure to reduce administrative complexity.

While acknowledging potential differences in specific provisions, President Tinubu emphasized that reforming Nigeria’s tax laws and improving their administration is essential for national development.

He expressed respect for NEC’s advice and affirmed that he values the council’s contributions to economic matters. However, he maintained that the legislative process should proceed without delay.