Reps approve tax reform bills, keep VAT at 7.5%

The House of Representatives, on Thursday,  March 13, 2025, adopted the tax reform bills as a working document.

Arising from the Committee of the Whole, the Speaker of the House, Tajudeen Abbas, said after deliberations on clauses of the tax reform bills, the House adopted the bills as a working document.

Abbas who commended the Committee on Finance for a work well done said the report was a reflection of Nigeria’s mind.

The Speaker said: “All the 36 states, including the Federal Capital Territory, have their representatives in the sub-committee.

“This is the first time such a report is getting hundred per cent approval by almost all members.”

Earlier, while presenting the report,  the chairman of the finance committee, James Faleke, said contentious areas were well taken care of.

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Faleke said the committee recommended that the Value Added Tax (VAT) be based on consumption.

He stated that the VAT still remained 7.5 per cent as it had been.

Falake said the committee recommended a repeal of the Federal Inland Revenue Service (FIRS) to establish the Nigeria Revenue Service.

The lawmaker said the Nigeria Revenue Service would be saddled with the responsibility of collecting revenues for the Federal Government of Nigeria.

He also expressed optimism that the  Nigeria Revenue Service would enhance seamless tax harmonisation and administration.

The Star