Important Things to Note Before Public Hearing on Tax Reform Bills
- Lawmakers in Nigeria’s Senate and House of Representatives are set to commence a five-day public hearing on the Tax Reform Bills
- The Executive Bill, introduced by President Bola Ahmed Tinubu, seeks to enhance tax efficiency and boost revenue generation.
- Their collaborative efforts have been instrumental in simplifying the proposals and ensuring clarity on their benefits.
Lawmakers in Nigeria’s Senate and House of Representatives are set to commence a five-day public hearing on the Tax Reform Bills, a key legislative effort to restructure the country’s tax system.
The hearings will take place on Monday, February 24, and Tuesday, February 25, 2025, at the Senate, followed by sessions at the House of Representatives from Wednesday, February 26, to Friday, February 28, 2025.
Source: UGC
Extensive stakeholder consultations
The Executive Bill, introduced by President Bola Ahmed Tinubu, seeks to enhance tax efficiency and boost revenue generation.
The reforms have been driven by Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), and Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reform.
Their collaborative efforts have been instrumental in simplifying the proposals and ensuring clarity on their benefits.
Ahead of the public hearing, Adedeji and Oyedele have engaged key stakeholders, including state governors, trade associations, youth groups, civil society organisations, journalists, and media executives.
Tax analyst Mrs Arabinrin Aderonke Atoyebi said such engagements have played a critical role in building public trust in the reforms.
“The extensive consultations have ensured that diverse perspectives are considered, making this a truly inclusive reform process,” Atoyebi said.
Legislative milestones and key bills
The proposed reforms have successfully passed two readings in the National Assembly.
Senator Sani Musa, Chairman of the Senate Committee on Finance, highlighted the importance of the hearings, stating, “We intend to take on two of the bills on each day of the session for the press to be fully abreast with what we intend to do.”
The legislative package includes four distinct bills:
- Nigeria Tax Bill: Aims to consolidate existing tax laws into a simplified framework.
- Nigeria Tax Administration Bill: Focuses on reducing bureaucratic hurdles and improving tax compliance.
- Nigeria Revenue Service (NRS) Bill: Seeks to replace the Federal Inland Revenue Service (FIRS) with a modernised Nigeria Revenue Service, leveraging technology for transparency.
- Joint Revenue Board Bill: Proposes a centralised tax oversight board to ensure uniform tax administration across all government levels.
Source: Twitter
Projected Benefits of the Tax Reforms
According to Atoyebi, the proposed changes could yield significant benefits, including:
Economic Growth: A transparent tax system could attract investments and stimulate economic activities.
Revenue Generation: Enhanced compliance measures may increase government revenue.
Equitable Distribution: The reforms seek to ensure fair allocation of tax revenue among states.
Atoyebi urged Nigerians to participate actively as the public hearing approaches, emphasising that it is a crucial moment for shaping a tax system that aligns with national economic aspirations and social equity.
FIRS commences stakeholders' engagement on e-invoicing
Legit.ng previously reported that the Federal Inland Revenue Service (FIRS) has commenced a wide consultation and stakeholder engagement on its proposed roll-out of the novel e-invoicing solution.
The agency is prepping to digitize invoicing in tax administration and filing via the pilot phase of the e-invoicing roll-out.
The nation’s tax administrator disclosed that e-invoicing targets mainly large taxpayers and hopes to simplify the filing process for companies and individuals. Read more: https://www.legit.ng/business-economy/economy/1641387-firs-commences-stakeholders-engagement-pilot-phase-roll-e-invoicing-solution/
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Source: Legit.ng
