The House of Representatives, on Thursday, adopted the Tax Reform Bill as a working document following deliberations in the Committee of the Whole. Speaker Tajudeen Abbas announced the adoption after a clause-by-clause review of the bill, commending the Committee on Finance for its efforts.
According to Abbas, the report represents a nationwide consensus, “All 36 states, including the Federal Capital Territory, had their representatives in the sub-committee. This is the first time such a report has received nearly unanimous approval,” he stated.
Presenting the report, Chairman of the Finance Committee, Rep. James Faleke, assured that all contentious areas had been addressed. One of the key recommendations is that Value Added Tax (VAT) should remain consumption-based, with the rate maintained at 7.5%.
The committee also proposed repealing the Federal Inland Revenue Service (FIRS) and establishing the Nigeria Revenue Service (NRS) as its replacement. The new agency would be responsible for collecting federal government revenues and is expected to streamline tax harmonization and administration across the country.
Faleke expressed confidence that the Nigeria Revenue Service would enhance efficiency and transparency in tax collection, ultimately boosting government revenue.
