By John Joseph
Kindly share this news
The Tax Reform Bills, currently under consideration by the National Assembly, are expected to significantly alter Nigeria’s tax landscape. According to Hon. Alex Mascot Ikwechegh, representing Aba North/South Federal Constituency, the bills will help governors think outside the box in sourcing revenue, promoting self-sufficiency and reducing dependence on federal allocations.
The Tax Reform Bills comprise four key pieces of legislation: the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill. These bills aim to harmonize Nigeria’s tax laws, simplify tax administration, and expand the country’s tax base.
Key Provisions of the Tax Reform Bills
Progressive Personal Income Tax: The Nigeria Tax Bill introduces a progressive personal income tax system, exempting incomes below ₦800,000 from tax and applying higher tax rates to higher income earners.
Value-Added Tax (VAT): The bills propose a revised VAT system, ensuring that taxpayers are taxed based on their consumption patterns.
Tax Relief for Low-Income Earners: The bills provide tax relief for low-income earners, reducing their tax burden and increasing their disposable income.
While some lawmakers, including those from the southeast zone, have expressed concerns about certain provisions of the bills, Ikwechegh assures that the bills are not detrimental to any region. He emphasizes the importance of taking time to study and understand the bills, given their complexity and potential impact on the country.
The passage of the Tax Reform Bills is expected to have far-reaching consequences for Nigeria’s economy, promoting fiscal discipline, and encouraging economic growth. As Ikwechegh notes, “This is a bill that will literally alter the way everything is at the moment in Nigeria.”
Kindly share this news!!!