KEY POINTS
- President Tinubu sends four tax reform bills to the National Assembly.
- The first bill is aimed at changing the name of the Federal Inland Revenue Service (FIRS) to Nigeria Revenue Service (NRS).
- Bills are enacted to relatively improve the general compliance of taxes to be paid by the taxpayers, fewer tax litigations and the underlying increase in fiscal relevance.
President Bola Tinubu has forwarded four bills to Senate and House of Representatives for the purpose of passing
The proposed legislation is enclosed in the “The Nigeria Revenue Service (Establishment) Bill,” with the purpose of replacing the current Federal Inland Revenue Service (Establishment) Act No. 13 2007 with the Nigeria Revenue Service, which is to be tasked with the assessment, collection and accountability for all revenues that are receivable by the federal Nigerian government.
Overview of tax reform bills
Besides the name change, the president has presented the “Transmission of Fiscal Policy and Tax Reform Bills to the National Assembly,” which consist of The Nigeria Tax Bill. This bill seeks to establish a Coordinated Fiscal Tax Calendar for Taxation in Nigeria in order to help to harmonize the tax administration in Nigeria.
The other major reform is the Nigeria Tax Administration Bill that seeks to put in place a sound legal framework to the administration of tax laws that will enhance compliance, lower litigation and enhance efficiency in the generation of revenues. Also, to harmonize and settle any controversy relating to revenue administration Tinubu moved a motion for the enactment of the Joint Revenue Board (Establishment) Bill seeking to establish a Joint Revenue Board, Tax Appeal Tribunal, and the office of the Tax Ombudsman.
A step towards improving fical discipline
According to Vanguard, Mr. President Tinubu was clear that these bill are meant to advance the architecture of Nigeria’s fiscal system, improve on taxation compliance, and assist in the formation of a favorable fiscal framework. “These reforms are therefore positively associated with economic growth through improving taxpayers’ compliance and fiscular institutions,” he said.
The president said that once these measures were implemented they would kick-start the economy and give the right fiscal direction. He called on the National Assembly to especially fast-track processing of the bills to facilitate the intended change.
‘In this again, I am sure that once these bills are enacted into law they will foster and rejuvenate the economy’ Tinubu concluded. He paid his highest regard to the House, urging them to waste no time in passing the drafts into law.
