House of Representatives Passes Harmonised Tax Reform Bills

The Nigerian House of Representatives has successfully passed a set of harmonised tax reform bills aimed at overhauling the country’s tax system. The bills, which seek to simplify tax administration and expand the nation’s tax base, are part of the government’s efforts to improve revenue generation and ease the tax burden on citizens.

Key among the legislations passed are provisions for the establishment of the Nigeria Revenue Service (NRS), which will unify tax collection processes and replace the current fragmented system. Amendments to the Petroleum Industry Act, adjustments to the Value Added Tax (VAT) framework, and the introduction of a global minimum tax on multinational corporations operating in Nigeria are also included.

Lawmakers assert that these reforms will promote transparency, reduce tax evasion, and create a more business-friendly environment. The bills now move to the Senate for consideration before being presented to the President for assent.

Tax experts and business leaders have broadly welcomed the development, noting that it could significantly boost government revenue and provide funds for infrastructure and social services. However, some stakeholders urge caution, emphasizing the need for effective implementation and clear communication to avoid confusion among taxpayers.

The passage of these bills marks a critical step in Nigeria’s ongoing economic reforms as the government seeks to strengthen its fiscal position and stimulate growth.