Federal Government Highlights Key Benefits of Tax Reform Bills
The Federal Government has reaffirmed its commitment to overhauling Nigeria’s tax system through the Tax Reform Bill, introduced by President Bola Tinubu and currently awaiting approval in the National Assembly.
The bill seeks to streamline taxation, enhance ease of doing business, and protect low-income earners from excessive financial burdens.
Speaking at a press briefing organized by the National Orientation Agency (NOA) in Osogbo, the agency’s Director-General, Mallam Lanre Issa-Onilu, represented by the Director of Report Coordination and Improvement, Olubukola Olorunfemi, provided insights into the proposed reforms.
Tackling Multiple Taxation
Issa-Onilu emphasized that the reforms aim to eliminate Nigeria’s long-standing challenge of multiple taxation, where businesses and individuals face overlapping and redundant tax demands from various authorities.
“The government is working to stop different levels of authority from taxing people for the same thing. The proposed reforms will address these inefficiencies while ensuring fairness in the tax system,” he stated.
Key Components of the Reform
The reform comprises four distinct bills designed to revamp the country’s tax administration and governance:
- Nigeria Tax Bill
- Consolidates existing tax laws into a unified framework.
- Repeals 11 outdated laws on tax imposition and collection.
- Nigeria Tax Administration Bill
- Focuses on improving tax governance and enforcement.
- Nigeria Revenue Service Establishment Bill
- Establishes a unified national revenue service to oversee tax collection.
- Joint Revenue Board Establishment Bill
- Coordinates tax policies across federal, state, and local government levels.
Protecting Low-Income Earners
The reforms aim to alleviate financial pressure on low-income earners by ensuring they pay minimal or no taxes. This measure is expected to help individuals manage their finances more effectively while encouraging compliance.
“Those earning very little will pay little or no taxes. This will enable them to manage their resources better,” Olorunfemi explained.
Modernizing Tax Systems
The Federal Government also plans to introduce digital systems to make tax payments more efficient, transparent, and accountable. These systems will simplify the process for taxpayers while ensuring revenue is used to improve public services such as education, healthcare, and infrastructure.
“New digital systems are being introduced to make tax payments easier, faster, and more accountable. Tax revenue will be used to improve essential public services like schools, hospitals, and infrastructure, ensuring citizens see the benefits of their contributions,” Olorunfemi added.
A More Equitable System
According to the Federal Government, the reforms aim to create a fair and equitable tax system that supports economic growth while reducing undue financial strain on hardworking Nigerians.
By addressing redundancies, streamlining processes, and protecting vulnerable populations, the government hopes the Tax Reform Bill will serve as a catalyst for sustainable development and improved living standards across the country.
