President Bola Tinubu has rejected the National Economic Council’s (NEC) recommendation to pull back the proposed tax reforms bill from the National Assembly.
The NEC, led by Vice President Kashim Shettima, advised withdrawing the bill for broader consultations, following claims of regional opposition, especially from the north, alleging that the bill may be unfair to the region.
In response to the NEC’s advice, Tinubu reaffirmed his commitment to let the bill proceed through the legislative process. In a statement by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu urged any concerned parties to voice their opinions during the public hearings.
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“President Bola Tinubu has received the National Economic Council’s recommendation that the tax reform bills already sent to the National Assembly be withdrawn for further consultation,” the statement read. “He commends the NEC members, particularly Vice President Shettima and the 36 State Governors, for their counsel. However, he believes the legislative process, which has already begun, allows for contributions and revisions without withdrawing the bills.”
The statement also outlined that the tax reforms aim to enhance Nigeria’s economy and foster a more favorable environment for business. “The objective is to reposition the economy for better productivity and efficiency and to create a conducive environment for investment and businesses,” it stated, noting that a Presidential Committee on Tax and Fiscal Policy Reform has been gathering input from various societal groups and stakeholders over the past year.
The proposed tax reforms consist of four key bills:
Nigeria Tax Bill: Aims to streamline tax obligations for businesses and individuals, removing multiple taxation.
Nigeria Tax Administration Bill (NTAB): Proposes unified tax administrative processes to simplify taxpayer compliance and improve federal, state, and local revenue.
Nigeria Revenue Service (Establishment) Bill: Seeks to re-establish the Federal Inland Revenue Service as the Nigeria Revenue Service, broadening its mandate to reflect its role across all states.
Joint Revenue Board Establishment Bill: Proposes replacing the Joint Tax Board with a Joint Revenue Board, including the creation of an Office of Tax Ombudsman to protect taxpayer rights and resolve disputes.
These bills, according to the Presidency, aim to coordinate tax authorities at all levels to reduce administrative inefficiencies. They seek to unify separate taxes such as Company Income Tax (CIT), Personal Income Tax (PIT), Value-Added Tax (VAT), and others under a consolidated framework.
“While there may be varying views on certain provisions within the new tax bills, the need for tax law review and reform in line with national development goals is undisputed,” the statement added.
Tinubu reaffirmed his respect for NEC’s advisory role on economic matters and welcomed continued dialogue to address any reservations while the National Assembly reviews the bills.
