The four tax bills transmitted to the National Assembly by President Bola Tinubu in October 2024 were on Tuesday passed on the third reading in the House of Representatives.
The House had last Thursday considered and approved the report of the House Committee on Finance, which proposed several recommendations on the executive bills.
After a delay of about three months, which included public hearings and the receipt of memoranda from concerned stakeholders, the National Assembly finally resumed work on the bills three weeks ago.
The hearings were focused on how best to reform Nigeria’s tax administration system.
During Tuesday’s plenary, House Leader, Julius Ihonvbere, moved for the bills to be read for the third and final time.
He said: “Mr. Speaker and honourable colleagues, I move that the bill for an Act to provide for the assessment, collection of, and accounting for revenue accruing to the federation, federal, states, and local governments, prescribing the powers and functions of tax authorities, and for related matters be read for the third time.”
He further moved for the reading of additional bills for the third time.
These included a bill to repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007, and enact the Nigeria Revenue Service (Establishment) Bill, which would establish the Nigeria Revenue Service with powers for assessment, collection, and accounting for revenue accruable to the government.
He also moved for a bill to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman for the harmonisation, coordination, and settlement of disputes arising from revenue administration in Nigeria.
Lastly, a bill to repeal certain acts on taxation and consolidate the legal frameworks relating to taxation, enacting the Nigeria Tax Act to provide for the taxation of income, transactions, and instruments was also moved for third reading.
The bills were then overwhelmingly voted on by the lawmakers and passed with Speaker Tajudeen Abbas presiding over the session.
The next step will see the bills forwarded to President Tinubu for assent after passing through the Senate and, if necessary, undergoing harmonszation between the Senate and House versions.
Despite the overwhelming support, the bills faced opposition, particularly from lawmakers from northern Nigeria, who, in solidarity with their governors, called for the bills to be withdrawn for further consultation.