The Deputy President of the Senate, Senator Barau Jibrin (APC, Kano North), who presided over Wednesday’s plenary session confirmed that debate on the tax bills would continue today.
The Tax Reform Bill was introduced unexpectedly during Wednesday’s plenary session, sparking anger and a heated argument among lawmakers. Its inclusion was not part of the day’s scheduled agenda, which led to rising tensions.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, outlined the details of the bills aimed at overhauling the tax system. He emphasized that the reform was designed not to tax poverty but prosperity, focusing on addressing imbalances in tax distribution.
Key proposals in the bills include the elimination of minimum tax for loss-making companies, a 15% effective tax rate on large companies’ profits, removal of VAT on essential goods and services, and increased income tax thresholds for low-income earners.
On the contentious issue of VAT revenue sharing, Oyedele explained that the current formula was deemed unfair, as it disproportionately favored states with major corporate headquarters, such as Lagos. The proposed reform aims for a more equitable distribution based on consumption within states.
Additionally, the proposed bills would exempt Nigerians earning less than N1 million per month from paying personal income tax.
Although the National Economic Council (NEC) called for broader consultation on the bills, President Tinubu confirmed on October 31, 2024, that the bills would continue through the legislative process. He reassured that Nigerians with concerns would have the opportunity to voice their opinions during the public hearing phase.
