House of Representatives Committee on Finance Proposes Major Changes to Tax Reform Bills

The House of Representatives Committee on Finance has proposed major changes in the tax reform bills sent to the National Assembly by President Bola Ahmed Tinubu. Daily Trust reports that the committee modified a number of clauses, expunged some, retained many, and introduced new clauses in the bills.

The chairman of the House Committee on Finance, Rep James Abiodun Faleke, presented the reports on the consolidated tax reform bills to the House at the resumption of plenary. The bills include provisions for the assessment, collection, and accounting of revenue accruing to the Federation, as well as the establishment of the Nigeria Revenue Service and other related matters.

One of the key changes made by the committee was the retention of the current 7.5% VAT rate, instead of the proposed increase to 10% and subsequent increments. The committee also modified the inheritance tax clause, stating that whoever inherits an estate and invests it in a business yielding returns will be taxed.

Additionally, the committee recommended that funding for TETFUND, NITDA, and NASENI should continue, and proposed a distribution formula for the 4% development levy fund. Other modifications include changes to company tax rates and provisions for fiscalisation.

While some lawmakers have expressed satisfaction with the changes made by the committee, concerns remain about certain provisions in the bills. A research conducted by the Centre for Democratic Development Research and Training highlighted potentially dangerous provisions that could be abused if not addressed.

Overall, the proposed changes in the tax reform bills have sparked debates and discussions among lawmakers, stakeholders, and the public. The House of Representatives is set to begin clause-by-clause consideration of the bills, with hopes of addressing all contentious issues before passage.