House of Representatives Approves Tax Reform Bills After Months of DeliberationAfter five months of negotiations and a three-day public hearing, the House of Representatives has officially approved the Finance Committee’s report on the widely debated tax reform bills.
The bills were passed without opposition, incorporating several amendments to address concerns raised during deliberations.
Among the significant changes were the retention of the Value Added Tax (VAT) at 7.5%, modifications to inheritance tax regulations, and an adjusted framework for VAT distribution. The House also approved an exemption for military personnel from paying personal income tax.
House Speaker Tajudeen Abbas emphasized the unprecedented level of consensus on the bills, stating, “All the 36 states, including the Federal Capital Territory, have their representatives in the sub-committee. This is the first time such a report is getting hundred per cent approval by almost all members.
” Chairman of the Finance Committee, James Faleke, provided insight into the rigorous review process that shaped the final recommendations. “These bills underwent three full days of public hearings, with input from over 80 key stakeholders. Afterward, we held an eight-day retreat to debate each clause,” Faleke explained. “I am glad that House members recognised our thorough work and approved all our recommendations.”
With the adoption of the report, the House is now set to move forward with the formal passage of the tax reform bills. This step follows President Bola Tinubu’s call in October 2024 for the National Assembly to approve key tax reform measures, including the NRS Bill, Nigeria Tax Bill, Tax Administration Bill, and the Joint Revenue Board Establishment Bill.
While some provisions in the bills initially raised concerns in various regions, President Tinubu remained firm in his support, arguing that these reforms are vital for Nigeria’s economic progress.
