The Presidency has revealed that the new tax reform Bills before the National Assembly are critical to improving the lives of Nigerians and were not proposed by President Bola Tinubu to undermine any part of the country.
The Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga stated this on Thursday in an explainer titled: Proposed Tax Reform Bills Not Against The North; They Will Benefit All States, made available to State House Correspondents.
Mr. Onanuga stated that the proposed tax reform laws will not increase the number of taxes currently in operation but are designed to optimize and simplify existing tax frameworks.
The Presidential Spokesperson added that the tax rates target a more equitable distribution of tax obligations without adding to the burden on Nigerians.
He stressed that this will remain the same under the proposed reforms.
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Further addressing the misunderstandings and misgivings around the tax reform already embarked upon by the administration of the President, Mr. Onanuga stressed that the new proposal, as enunciated in the Bill, is designed to create a fairer system
He noted that the reforms will not lead to job losses. On the contrary, they are structured to stimulate new avenues for job creation by supporting a dynamic, growth-oriented economy.
The Presidential aide emphasised that the proposed laws will not absorb or eliminate the duties of any existing department, agency, or ministry. Instead, they aim to harmonize revenue collection and administration across the federation to ensure efficiency and cooperation.
The new proposal before the National Assembly as explained by Mr. Onanuga outlines a different form of derivation which considers the place of supply or consumption for relevant goods and services.
“This means that states in the Northern region that produce the food we eat should not lose out just because their products are VAT-exempt or consumed in other states.
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“These reforms are critical to improving the lives of Nigerians and were not put forward by President Tinubu to undermine any part of the country,” he added.
There is no better time than now for the National Assembly to give due consideration to these bills that will overhaul our tax systems and create the revenue all the tiers of government require to fund the development our country and people urgently need.
It would be recalled that the Federal Executive Council endorsed new policy initiatives aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency, and eliminating redundancies across the nation’s tax operations.
The Presidential aide stated that the reforms emerged after an extensive review of existing tax laws. The National Assembly is considering four executive bills designed to transform and modernize Nigeria’s tax landscape.
The current model for distributing VAT is based on where the tax is remitted rather than where goods and services are supplied or consumed. The ongoing tax reform seeks to correct the inherent inequity in the current derivation model as a basis for distributing VAT revenue.
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The National Assembly is considering four executive bills designed to transform and modernize Nigeria’s tax landscape.
The first tax reform aims to eliminate unintended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide.
Second, the Nigeria Tax Administration Bill (NTAB) proposes new rules governing the administration of all taxes in the country. Its objective is to harmonise tax administrative processes across federal, state and local jurisdictions for ease of compliance for taxpayers in all parts of the country.
Third, the Nigeria Revenue Service (Establishment) Bill seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect the mandate of the Service as the revenue agency for the entire federation, not just the Federal Government.
Fourth, the Joint Revenue Board Establishment Bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all states’ tax authorities.
The fourth bill also suggests establishing the Office of Tax Ombudsman under the Joint Revenue Board, which would serve as a complaint resolution body for taxpayers.
