Despite substantial opposition from some lawmakers, the proposed tax reform bills made significant progress on Thursday, clearing their Second Reading in the Senate.
Senate Leader Michael Opeyemi Bamidele, who led the debate on the Executive Bill, called the bill "a significant move to overhaul the country's tax system.""These bills aim to streamline tax collection, ease the burden on small businesses, and simplify the tax landscape," he stated.
Get real-time news updates from Dailylight! Follow us on our WhatsApp channel for breaking news, Job updates, Cryptocurrency updates, exclusive stories and scholarship updates, and educational videos.
According to the Tribune Online, there has been a lot of discussion in recent weeks about the tax reform bills that were proposed by Taiwo Oyedele's Presidential Committee on Fiscal and Tax Reform.
Dailylight channel has thereby compiled the 10 must-know facts about President Tinubu's Tax Reform Bills
10 facts to know as a Nigerian about President Tinubu’s tax reform bills
#10. Tax Burden Reduction
The plan to lower the corporate income tax rate from 30% to 25% over the following two years is a noteworthy aspect of the reforms. This cut aims to encourage investment and lessen the financial strain on companies.#09. Principles of Derivation in the Distribution of VAT Revenue
By distributing VAT funds according to the states in which products and services are consumed rather than combining them centrally for redistribution, the proposals suggest a substantial change in the way VAT revenue is distributed. According to Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS), this strategy makes VAT consistent with its status as a consumption tax.#08. Discounts for Low-Income Workers
People who make less than the minimum wage will not be subject to the Pay As You Earn (PAYE) tax, according to the amendments. In a similar vein, small enterprises with yearly sales of N50 million or less would not be required to pay taxes.Related stories
- Nelfund Student Loan ( All You Need to Know from registration to disbursement)
- OYO govt releases first list of qualified TESCOM applicants
- Nigerian Army 2025 Chief of Army Staff (COAS) Literary Essay Competitions
#07. Tax Administration Harmonization
Standardizing tax laws at the federal, state, and local levels is the goal of the Nigeria Tax Administration Bill. By lowering taxpayer confusion and compliance expenses, this strategy aims to improve tax collection efficiency and transparency.#06. Establishment of Nigeria Revenue Service
According to the Nigeria Revenue Service (Establishment) Bill, the Federal Inland Revenue Service (FIRS) will become a centralized organization in charge of collecting taxes across the country. Enhancing accountability and streamlining revenue creation procedures are the goals of this rebranding.#05. Important Bills Introduced
The Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill are the four primary bills that make up the reform package. Specific facets of tax administration, compliance, and enforcement are covered by each measure.#04. Principal Advantages
Through targeted tax exemptions, the proposed measures seek to increase disposable incomes, eradicate double taxation, promote private sector investment in vital industries, and guarantee consistency in tax revenue administration throughout Nigeria.#03. Joint Revenue Board for the Rights of Taxpayers
It is suggested that the current Joint Tax Board be replaced by a Joint Revenue Board to promote a uniform approach to tax administration. The new body would concentrate on defending taxpayer rights and settling conflicts with tax authority agents.#02. Promoting Investment in the Private Sector
The changes help Nigeria achieve its larger economic development objectives by positioning taxes as a strategic tool to draw private sector investment into vital industries.#01. Reading a second time endorsed by the Senate
Despite some senators' concerns about stakeholder engagement and the derivation principle, the proposed laws made it to the Senate's Second Reading. Within six weeks, the Senate Committee on Finance is required to study the measures and provide a report.Final Thoughts on 10 facts to know as a Nigerian about President Tinubu’s tax reform bills
These are the 10 elements of the newly proposed tax bill by President Bola Ahmed Tinubu. Is the current situation in Nigeria worth this?
Join the conservation on our Twitter handles to drop your comments.
If you find this guide useful and helpful, kindly share it with others on your social media handles.
Also, we implore you to subscribe to our Dailylight YouTube channel for valuable educational videos and connect with us on LinkedIn, Facebook, Twitter, WhatsApp channel, and Google News for personal development tips, updates on scholarships, jobs, relevant news updates, crypto news, and business trends.
Tags
Economy