The Presidency has clarified that the proposed tax reform bills endorsed by President Bola Tinubu and the Federal Executive Council (FEC) are not designed to target any specific region.
The clarification was made by the Special Assistant to the President on Social Media on Thursday following concerns raised by the Northern Governors’ Forum.
19 Northern Governors, under the chairmanship of Gombe State Governor, Muhammed Inuwa Yahaya had earlier expressed reservations over the derivation-based VAT distribution model outlined in the bills.
The statement was issued after a forum meeting on Monday, October 28, 2024, where Northern traditional rulers, led by the Sultan of Sokoto, His Eminence Muhammadu Sa’ad Abubakar III, were also in attendance.
Responding to the concerns, the Presidency highlighted that the four executive bills currently under review by the National Assembly are intended to modernize Nigeria’s tax administration, increase efficiency, and ensure a more competitive economy.
Below is an overview of the proposed bills and their intended impact:
1. Nigeria Tax Bill: This bill seeks to streamline Nigeria’s taxation framework by eliminating unintended multiple taxation.
It aims to create a business-friendly environment, making tax compliance easier and stimulating economic competitiveness across the country.
2. Nigeria Tax Administration Bill (NTAB): Focused on harmonizing tax processes across federal, state, and local levels, the NTAB is designed to simplify tax administration and enhance compliance, ensuring uniformity and ease for taxpayers in all regions.
3. Nigeria Revenue Service (Establishment) Bill: This bill proposes renaming the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to reflect its mandate as the revenue authority for the entire federation.
4. Joint Revenue Board Establishment Bill: This bill suggests establishing a Joint Revenue Board, replacing the Joint Tax Board, to unify federal and state tax authorities.
Additionally, it proposes creating the Office of the Tax Ombudsman, which will act as a complaint resolution body for taxpayers, ensuring fairness and accountability in tax administration.
The Presidency emphasized that these reforms will not increase the existing number of taxes or tax rates but rather aim to optimize and simplify the tax structure without adding to the burden on Nigerians.
Additionally, the reforms are expected to drive job creation, enhance cooperation between revenue bodies, and contribute to a robust, growth-oriented economy.
These initiatives are aligned with the Tinubu administration’s goal of fostering an efficient tax administration system that benefits all states equally, supporting the President’s commitment to sustainable economic development across Nigeria.