Federal Character
  • Home
  • News
  • Politics
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Relationship and Life
  • Fashion & Lifestyle
  • Food & Nutrition
  • Health
  • Opinion
No Result
View All Result
  • Home
  • News
  • Politics
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Relationship and Life
  • Fashion & Lifestyle
  • Food & Nutrition
  • Health
  • Opinion
No Result
View All Result
Federal Character
No Result
View All Result
Home Government

House of Representatives Approves Tax Reform Bills

Benita OrumabyBenita Oruma
March 13, 2025
in Government
0
House of Representatives Approves Tax Reform Bills
Share on FacebookShare on TwitterShare on Whatsapp

In a bold move to reshape Nigeria’s tax landscape, the House of Representatives, on Thursday, adopted the four tax reform bills after an intense clause-by-clause review at the Committee of the Whole, presided over by Speaker Abbas Tajudeen. This crucial step sets the stage for the third reading, bringing the country closer to a long-awaited overhaul of its taxation system.

Table of Contents

Toggle
  • Major Changes and Key Decisions
    • A New VAT Distribution Formula
    • No VAT Increase—for Now
  • Controversial Terminology Gets a Makeover
  • Guaranteed Funding for Key Development Agencies
  • Inheritance Tax Clarified
  • The Four Tax Bills at a Glance
    • 1. Nigeria Revenue Service (Establishment) Bill
  • What’s Next?

Major Changes and Key Decisions

A New VAT Distribution Formula

One of the most debated clauses, the Value Added Tax (VAT) distribution formula was finally settled. The new structure allocates 50% based on equality, 20% on population, and 30% on consumption, aligning with a proposal originally put forward by the Nigerian Governors’ Forum (NGF). This shift aims to strike a balance between fairness and economic impact.

No VAT Increase—for Now

Despite calls for a gradual increase in VAT rates, lawmakers took a decisive stance, choosing to maintain the current 7.5% rate. This decision reflects concerns about inflationary pressures and the financial burden on Nigerians.

House of Representatives Approves Tax Reform Bills

Controversial Terminology Gets a Makeover

In a move to avoid potential conflicts, the House replaced the term “ecclesiastical” with “religious” in one of the clauses. While seemingly minor, this adjustment underlines the legislature’s sensitivity to inclusivity and neutrality in tax-related language.

Guaranteed Funding for Key Development Agencies

The House approved the continuous funding of crucial agencies including the Tertiary Education Trust Fund (TETFUND), the National Agency for Science and Engineering Infrastructure (NASENI), and the National Information Technology Development Agency (NITDA) through development levies. This ensures these agencies remain financially equipped to drive innovation and progress.

Inheritance Tax Clarified

The previously contentious clause on inheritance tax was refined to specify that only inherited wealth reinvested in profit-generating ventures would be taxable. This change aims to protect inherited assets while ensuring taxable income is fairly assessed.

The Four Tax Bills at a Glance

1. Nigeria Revenue Service (Establishment) Bill

Establishes the Nigeria Revenue Service, tasked with assessing, collecting, and managing government revenue.

2. Nigeria Tax Bill
Consolidates Nigeria’s tax laws, streamlining the legal framework for income, transaction, and instrument taxation.

3. Nigeria Tax Administration Bill
Introduces the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombud to enhance dispute resolution and tax administration efficiency.

4. Joint Revenue Board (Establishment) Bill
Creates a unified body to coordinate tax-related matters, ensuring smoother revenue administration across the country.

What’s Next?

With these sweeping reforms gaining momentum, the bills now await a critical third reading. If passed, they will mark a defining moment in Nigeria’s fiscal policy, potentially driving economic stability, improving tax collection efficiency, and fostering a more equitable distribution of national revenue. Will these reforms unlock a new era of financial transparency and economic growth, or will they face further hurdles? The final decision looms on the legislative horizon.

Tags: Billsfederal characterHouse of RepresentativesNewsreformtax
Benita Oruma

Benita Oruma

Benita Oruma is a lawyer in training, a 400 level student in the university of Ibadan. She is a content writer with interest in corporate affairs and the marketplace.

Related Posts

What Happens if Hamas Rejects Trump's Gaza Peace Plan by the Deadline?
Government

What Happens if Hamas Rejects Trump’s Gaza Peace Plan by the Deadline?

October 3, 2025
Is Charlie Kirk a Racist?
Government

Is Charlie Kirk a Racist?

October 3, 2025
Is Parental Leave Now Equal in South Africa? Breaking Down the Top Court's Decision
Government

Is Parental Leave Now Equal in South Africa? Breaking Down the Top Court’s Decision

October 3, 2025
Next Post
Donatella Versace Dethroned! Prada’s Power Move?

Donatella Versace Dethroned! Prada’s Power Move?

UEFA Defends Decision to Overturn Alvarez’s Penalty but Empowers a Rule Review

UEFA Defends Decision to Overturn Alvarez’s Penalty but Empowers a Rule Review

Rivers Assembly Shuts Down Indefinitely—Fubara Stuck in Political Crossfire

Rivers State Political Crisis: Governor Fubara Appeals to Lawmakers to Embrace Peace

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

NSCDC Seals Illegal Refinery, Arrests Four Suspects in Ebonyi

NSCDC Seals Illegal Refinery, Arrests Four Suspects in Ebonyi

11 months ago
BBNaija Star Mercy Eke Celebrates 35th Birthday

BBNaija Star Mercy Eke Celebrates 35th Birthday

4 days ago
Police Suspect Terrorism in Melbourne Synagogue Blaze

Police Suspect Terrorism in Melbourne Synagogue Blaze

10 months ago
JPMorgan Agrees to $75 Million Settlement in Epstein Lawsuit with US Virgin Islands

JPMorgan Agrees to $75 Million Settlement in Epstein Lawsuit with US Virgin Islands

2 years ago

Categories

  • Beauty
  • Business & Finance
  • Entertainment
  • Fashion & Lifestyle
  • Food & Nutrition
  • Government
  • Health
  • News
  • Politics
  • Relationship and Life
  • Sports
  • Tech

Topics

2023 Aboki/Bureau De Change (BDC) apc Arsenal buhari Business cbn chelsea china court Davido Dollar Efcc Election Entertainment Euro and Pounds To Naira Exchange Rate For Today exchange rates for the Nigerian Naira (NGN) Fashion federal character federal government Finance food Football Foreign News government health inec Israel lagos Manchester United Naira Naira Black Market exchange rates News Nigeria pdp police Politics president protest Russia Sports tinubu trump ukraine US
No Result
View All Result

Highlights

Is Charlie Kirk a Racist?

Is Parental Leave Now Equal in South Africa? Breaking Down the Top Court’s Decision

Are ICE Tracking Apps a Security Risk? Behind Apple’s Controversial Removal

Is LAX at Risk? Chevron Refinery Fire Erupts in Key Jet Fuel Unit

What Does the India-China Flight Resumption Mean for Travelers and Trade?

October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose

Trending

What Happens if Hamas Rejects Trump's Gaza Peace Plan by the Deadline?
Government

What Happens if Hamas Rejects Trump’s Gaza Peace Plan by the Deadline?

bySomto Nwanolue
October 3, 2025
0

The US President Donald Trump's unilateral declaration of a Sunday deadline for Hamas to accept a peace...

Tuchel Drops Bellingham and Foden from the England Squad as Saka Returns

Tuchel Drops Bellingham and Foden from the England Squad as Saka Returns

October 3, 2025
Chelsea vs Liverpool: Stamford Bridge Showdown Could Define Early Title Race

Chelsea vs Liverpool: Stamford Bridge Showdown Could Define Early Title Race

October 3, 2025
Is Charlie Kirk a Racist?

Is Charlie Kirk a Racist?

October 3, 2025
Is Parental Leave Now Equal in South Africa? Breaking Down the Top Court's Decision

Is Parental Leave Now Equal in South Africa? Breaking Down the Top Court’s Decision

October 3, 2025

We launched Federal Character in February 2021 based on the belief that the world is in need of smarter and more efficient reporting of events shaping our rapidly changing world. We pledged to put our audience first, always.

Recent News

  • What Happens if Hamas Rejects Trump’s Gaza Peace Plan by the Deadline?
  • Tuchel Drops Bellingham and Foden from the England Squad as Saka Returns
  • Chelsea vs Liverpool: Stamford Bridge Showdown Could Define Early Title Race

Categories

  • Beauty
  • Business & Finance
  • Entertainment
  • Fashion & Lifestyle
  • Food & Nutrition
  • Government
  • Health
  • News
  • Politics
  • Relationship and Life
  • Sports
  • Tech

© 2024 FederalCharacter.com

No Result
View All Result
  • Home
  • News
  • Politics
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Relationship and Life
  • Fashion & Lifestyle
  • Food & Nutrition
  • Health
  • Opinion

© 2024 Federalcharacter.com