VAT Remains at 7.5 percent as Reps adopt tax reform bills

The House of Representatives on Thursday considered and adopted the four tax reform bills. The bills were adopted after a clause-by-clause consideration and approval at the Committee of the Whole, chaired by the Speaker, Abbas Tajudeen. With the consideration and adoption, the bills are now set to be passed for third reading at the next […]

The House of Representatives on Thursday considered and adopted the four tax reform bills.

The bills were adopted after a clause-by-clause consideration and approval at the Committee of the Whole, chaired by the Speaker, Abbas Tajudeen.

With the consideration and adoption, the bills are now set to be passed for third reading at the next legislative day.

Daily Trust reports that most of the contentious clauses that raised tension were addressed by the committee that handled the reports, thus, making the consideration and adoption of the reports seamless.

Key among the clauses considered and adopted include VAT distribution formula based on 50% equality; 20% population and 30% consumption as earlier proposed by the Nigerian Governors’ Forum (NGF).

The House rejected the proposal for incremental review of VAT rates and approved that the current 7.5% VAT rate be sustained.

The House deleted the use of the controversial word, “ecclesiastical” from one of the clauses and replaced it with “religious”.

The House also adopted the clause on continuous funding of TETFUND, NASENI and NITDA from the development levies fund.

The House also modified the contentious clause on Inheritance tax, saying, that an inheritance before dissolution cannot be taxed.

The reports considered and adopted by the House include report on a “Bill for an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States and Local Governments; Prescribe the Powers and Functions of Tax Authorities, and for Related Matters (HB.1756) ”.

“A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007 and Enact the Nigeria Revenue Service (Establishment) Bill to Establish Nigeria Revenue Service, charged with Powers of Assessment, Collection of, and Accounting for Revenue Accruable to the Government of the Federation and for Related Matters (HB.1757)”.

“A Bill for an Act to Establish Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombud, for the Harmonisation, Coordination and Settlement of Disputes arising from Revenue Administration in Nigeria and for Related Matters (HB.1758) and a “Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks Relating to Taxation and Enact the Nigeria Tax Act to Provide For Taxation of Income, Transactions and Instruments, and for Related Matters (HB.1759).”

Details follow