Tinubu’s Tax Reform Bills Pass Second Reading in House of Reps

The four tax reform bills transmitted to the National Assembly in 2024 by President Bola Tinubu have passed second reading at the House of Representatives.

Lawmakers debated the bills on the floor of the Green Chamber on Wednesday, six months after Tinubu sent them for legislative consideration based on recommendations from the Taiwo Oyedele-led Committee on Fiscal Policy and Tax Reforms.

The bills include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. With their second reading completed, they will now proceed to a public hearing.

The proposed tax reforms have sparked controversy, drawing sharp criticism from various quarters, including northern governors and opposition politicians who have called for their withdrawal.

During Wednesday’s plenary, most lawmakers expressed support for the bills. However, Rep. Sada Soli warned that certain provisions might contradict the 1999 Constitution. He stressed the need for clear definitions regarding derivation to prevent legal ambiguity.

Other lawmakers pointed out that the bills seek to amend 40 existing acts, urging that they be presented before Parliament. They also called for a review of provisions related to multiple taxation in property transactions, noting that both buyers and sellers would be required to pay taxes under the new framework.

The bills will now undergo further scrutiny by the relevant committee before final passage.