The Senate has passed four tax reform bills proposed by President Bola Tinubu for second reading, moving the proposed legislation closer to becoming law.
The decision was reached on Thursday following a debate led by Opeyemi Bamidele, the Senate Majority Leader.
Bamidele highlighted the bills’ potential to simplify Nigeria’s tax system, reduce burdens on small businesses, and streamline tax collection mechanisms.
“It will eliminate double taxation. In the area of tax exemption of the salaries below the minimum wage,” Bamidele said.
He added that the bills propose that state governments receive 55 percent of Value Added Tax (VAT) revenues, an increase from the current 15 percent, alongside efforts to consolidate core tax statutes.
The debate saw mixed reactions from senators. Seriake Dickson, representing Bayelsa West, pointed out that Nigeria’s reliance on oil revenue has hindered the development of a robust taxation system.
“There is nothing wrong in saying that phone calls that are made in Sokoto are calculated and paid to that state. We should ensure that this is transparent,” he said.
Ali Ndume, representing Borno South, expressed reservations, urging further legislative scrutiny.
“Reforms are necessary if we have to move forward. My problem is, number one, timing. Number two, the issue of derivation and VAT,” he said.
Countering Ndume’s concerns, Tahir Monguno, the Senate Chief Whip, argued against withdrawing the bills, stating that any necessary adjustments could be made during public hearings.
“These bills will reduce the tax burden on Nigerians,” Monguno said.
After extensive deliberations, Senate President Godswill Akpabio called for a vote, and the bills were passed for second reading.
The bills, initially sent to the National Assembly by President Tinubu in October.
