Senate passes 2 tax reform bills, retains 7.5% VAT

The Senate has passed two of the four tax reform bills.

The bills are expected to reform Nigeria’s tax laws.

The lawmakers approved the bills after considering and adopting recommendations from the Senate Committee on Finance, led by Senator Sani Musa, on Wednesday, May 7, 2025.

The four key bills are the Joint Revenue Board (Establishment) Bill, 2025; the Nigeria Revenue Service (Establishment) Bill, 2025; the Nigeria Tax Administration Bill; and the Nigeria Tax Bill.

However, only the bill to repeal the Federal Inland Revenue Service Act and enact the Nigeria Revenue Service (Establishment) Bill, 2025, was approved.

The second approved bill is the Nigeria Tax Administration Bill. This Act covers the assessment, collection, and accounting for revenue accruing to the federation, federal, states, and local governments.

It also prescribes the powers and functions of tax authorities and other related matters.

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Sani, presenting the report, said the bills aimed to reform Nigeria’s tax framework, strengthen institutions, and improve accountability and compliance.

Deputy Senate President Jibrin Barau congratulated the Senate, the finance committee, and the elders committee for their leadership and wisdom in passing the bills.

He noted that there were initially disagreements and rancour.

However, the Senate stood firm, establishing the elders committee to address contentious areas and consult various stakeholders.

Senate President Godswill Akpabio announced that the remaining two bills would be considered in plenary on Thursday, May 8.

He commended the finance committee and senators for their thorough work.

Akpabio also thanked the “elder senators” who addressed areas of contention through meetings and consultations.

Akpabio expressed optimism that the tax laws would revolutionise and optimise tax collection nationwide.

He also assured that the bills would benefit all Nigerians, dispelling rumours they were designed to favour a specific region.

The Star

Segun Ojo

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