BREAKING: House of Reps Finally Passes Tinubu's Tax Reform Bill, Details Emerge
- The House of Representatives has passed four tax reform bills, which were initially sent by President Tinubu in October 2024
- While lawmakers defend the reforms as necessary for economic growth, Northern leaders, the NGF, and business groups have raised concerns over potential economic burdens
- The bills will now be considered by the Senate before being signed into law, with analysts warning of the need for a balanced implementation approach
The House of Representatives on Tuesday passed the four tax reform bills sent to the National Assembly by President Bola Ahmed Tinubu in October 2024.
The approval came after a third reading and consideration of the report submitted by the House Committee on Finance, which reviewed input from stakeholders, including Nigerians.
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Contentious Reforms Spark Debate
The proposed tax reforms had sparked widespread debate, with various stakeholders expressing concerns over certain provisions.
Among the most vocal critics were Northern leaders, the Nigeria Governors Forum (NGF), and business interest groups, who opposed sections they claimed would overburden businesses and state economies.
Lawmakers Defend Tax Reform Agenda
During plenary, Speaker of the House, Tajudeen Abbas, emphasized that the reforms were necessary to modernize Nigeria’s tax system and enhance revenue generation for national development.
“The passage of these bills is a crucial step in strengthening our economy. While there have been concerns, it is important to note that these reforms aim to make our tax system more efficient and fair,” Abbas said.
Chairman of the House Committee on Finance, James Faleke, also defended the bill, stressing that extensive consultations had been held before finalizing the report.
“We listened to the voices of Nigerians, the private sector, and other stakeholders. The amendments reflect a balanced approach to ensure businesses do not suffer undue hardship while increasing government revenue,” Faleke noted.
Opposition From Key Stakeholders
Despite the House’s assurances, critics of the bills remain skeptical. A prominent Northern leader, speaking on condition of anonymity, warned that certain provisions could stifle economic activities in the region.
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“We are not against tax reforms, but the government must be careful not to introduce policies that will negatively impact struggling businesses and the informal sector,” he said.
The NGF had earlier urged lawmakers to reconsider specific aspects of the bills, arguing that some provisions encroached on states' fiscal autonomy.
Next Steps: Senate Consideration and Implementation
With the House of Representatives approving the bills, the next stage is for the Senate to deliberate on the proposals before they can be signed into law by President Tinubu.
Economic analysts suggest that while the reforms could improve Nigeria’s revenue generation, their implementation will require a careful balance to avoid excessive tax burdens on citizens and businesses.
The development continues to generate mixed reactions, with observers closely watching the Senate’s response and the potential impact of the tax reforms on Nigeria’s economy.
FG proposes new pattern of tax payment
In a related development, Legit.ng reported that the federal government proposed a tax payment option that enables individuals to pay their taxes in instalments.
The Nigeria Tax Bill 2024, which was recently submitted to the National Assembly for approval, contained this.
If approved, this means that everyone will have the option to pay their taxes before the filing deadline, either in full at once or in instalments.
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Source: Legit.ng
