Tax reform bills offer framework for critical reforms – CITN

The Chartered Institute of Taxation of Nigeria (CITN) said the tax reform bills currently before the National Assembly offer “A vital framework for critical reforms.” He said in spite of the controversy that have trailed the bills in recent times, the CITN President, Samuel Agbeluyi said, “The current tax climate coupled with national economic challenges […]

The Chartered Institute of Taxation of Nigeria (CITN) said the tax reform bills currently before the National Assembly offer “A vital framework for critical reforms.”

He said in spite of the controversy that have trailed the bills in recent times, the CITN President, Samuel Agbeluyi said, “The current tax climate coupled with national economic challenges demands a reimagining of our fiscal strategies.”

He spoke during a webinar on “The Economic Stabilisation Bill: A Blueprint for Tax Reforms and Economic Stability in Nigeria” convened by the institute.

The webinar brought together prominent tax experts who bared their minds on the efforts to reform the tax system.

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Agbeluyi stated that the economic stabilisation bills would “Address some of the deep-seated challenges in our tax system while setting the foundation for a resilient and inclusive economy.”

He said the institute as tax professionals must critically examine the proposed bills, provide well-considered insights, and advocate for measures that will support both the government’s objectives and the welfare of Nigerians.

Managing Partner, Ascension Consultancy Services Dean, Extractive Industries Taxation Faculty, CITN, Azeez Alatoye stated that after critical review of the NTB, 2024, the Presidential Committee on Fiscal Policy and Tax Reforms must be commended “For the development of the blueprint that seems to be fair to all.”

On the Nigerian Tax Administration Bill, which seeks to repeal the Federal Inland Revenue Service (Establishment) Act, Alatoye stated that after critical review of the bill, “It is noteworthy that the bill is well drafted to meet the global best practice and standard in Tax Administration.”

In his recommendation on chapter 2 Part V11 Section 29 which deals with Presumptive Taxation, he stated that there is need to amend the section to read “The government of a state (and not the minister) to make the presumptive taxation regulations to be implemented by states.”

On chapter Two Part IX No 56, which deals with rate of tax for companies, he said,  “For consistency and elimination of ambiguity, the National Assembly should harmonise this section to align with the definition in section 143 as provided in the proposed Nigeria Tax Administration Bill, which defines a “Small business” or “small company” to mean a business or company that earns gross turnover of N50,000,000.00 or less per annum with a total fixed assets of less than N100,000,000.00, provided that any business providing professional services shall not be classified as a small business or company.”