* Urges input, consultations at NASS instead
By Chesa Chesa
President Bola Tinubu says he will not bow to demands of the National Economic Council (NEC) for him withdraw the tax reforms bill he forwarded to the National Assembly for passage into law.
He has rather urged all those opposed to the bill to go ahead and make their input or amendments to the bill at public hearings or on the floor of the National Assembly as he prefers that the legislative process runs its full course.
Some stakeholders, particularly the Northern Governors Forum, had rejected the derivation-based model for Value Added tax (VAT) distribution in the new tax bill stating that it is against the interest of the North.
Meeting at the Presidential Villa on Thursday, the NEC, which is the highest economic advisory body to the President and chaired by the Vice-President, advised that the Bill be withdrawn to allow for wider and more comprehensive consultations among stakeholders.
In response, Tinubu has thanked the NEC, especially Vice-President Kashim Shettima and the 36 State Governors, for their advice, but insists that the legislative process, which has already begun, provides an opportunity for inputs and necessary changes without withdrawing the bills from the National Assembly, said a statement issued by his office 24 hours after the advice.
According to the statement signed off by his spokesman, Bayo Onanuga, on Friday, President Tinubu welcomed further consultations and engagement with key stakeholders to address any reservations about the bills while the National Assembly considers them for passage.
Onanuga recalled that the Tax and Fiscal Policy Reform was initiated in August 2023 to reposition the economy for better productivity and efficiency and make the operating environment for investment and businesses more conducive.
Four bills emerged from the work of the presidential committee set up for it, which received input 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.
Major highlights of the four Bills are:
1. The Nigeria Tax Bill: This Bill seeks to eliminate multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide.
2. 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.
3. 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.
4. The Joint Revenue Board Establishment Bill: This Bill proposes creating 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.
“The bills’ overarching objective 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.
“Under existing laws, 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.
“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 our tax laws and how we administer them to serve our overall national development agenda”, Onanuga explained.
