The Nigerian Senate has passed four tax reform bills proposed by President Bola Tinubu for second reading, moving the country closer to a reformed tax landscape aimed at easing burdens on small businesses and streamlining revenue collection.
Leading the debate on Thursday, Opeyemi Bamidele, Senate Majority Leader, highlighted the reforms’ potential impact.
“The bills will simplify the tax landscape, reduce the burden on small businesses, and streamline how taxes are collected,” he stated.
He also noted provisions to increase the states’ share of Value Added Tax (VAT) revenue from 15 percent to 55 percent.
Seriake Dickson, senator representing Bayelsa West, reflected on the historical reliance on oil revenue and its impact on Nigeria’s taxation system.
The discovery of oil did not allow the country to have a good taxation system as a means of revenue,” he said. Dickson further emphasized the bills’ potential to eliminate double taxation and provide exemptions for salaries below the minimum wage.
However, Ali Ndume, senator representing Borno South, urged caution and called for additional legislative scrutiny.
“Reforms are necessary if we have to move forward. My problem is, number one, the timing. Number two, the issue of derivation and VAT.
The constitution has to be amended for some of these provisions to be effected,” he argued.
Countering Ndume’s concerns, Tahir Monguno, Chief Whip of the Senate, defended the bills’ progress.
“These bills will reduce the tax burden on Nigerians,” Monguno said, suggesting that changes could be addressed during the public hearing phase.
The bills were ultimately passed to the next stage after Senate President Godswill Akpabio called for a vote. President Tinubu had initially urged the National Assembly to consider and pass the reforms in October.
The proposed legislation marks a significant step in Nigeria’s fiscal reform efforts, sparking diverse perspectives among lawmakers over its timing and constitutional implications.
