The federal government has disclosed that the proposed tax reforms introduced by President Bola Tinubu will lead to the repeal of at least 11 existing tax laws related to the imposition and collection of taxes. This announcement was made as part of the government's plans to streamline the country's tax system.
Additionally, the reforms are expected to eliminate over 50 nuisance taxes that currently burden local businesses, aiming to create a more business-friendly environment across Nigeria. The government has emphasized that these reforms are designed to simplify the tax system, improve fairness, and reduce the administrative burden on businesses and individuals alike.
Speaking during a briefing in Asaba, Delta State, which coincided with the observance of World HIV Day, Security Awareness, Discouraging Get-Rich-Quick Syndrome, World Human Rights Day, and the Tax Reforms initiative, the Director-General of the National Orientation Agency (NOA), Mallam Lanre Issa-Onilu, highlighted that the reforms are in the best interest of Nigerians. He expressed confidence that the bills will have a positive impact on the country’s economic stability and its tax system.
According to Issa-Onilu, the tax reforms are aimed at ensuring fairness, equity, and justice, with a focus on protecting the interests of ordinary citizens. He further stated that, if the reforms are approved, the Value Added Tax (VAT) will be based on the location where goods are consumed, rather than the location of the company’s headquarters, which is the current practice.
In her remarks, Mrs. Rebecca Nasamu, Director of General Services at NOA, who represented Issa-Onilu at the briefing, reiterated the government's commitment to reducing the tax burden on hardworking Nigerians. She emphasized that the reforms would also ensure that those who can afford to contribute more are taxed fairly, while those with lower incomes will be subject to minimal or no taxes, helping them better manage their finances.
Issa-Onilu elaborated on the content of the four key bills proposed by President Tinubu, which include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. He explained that the Nigeria Tax Bill will consolidate all major taxes imposed on individuals and companies, clearly outlining the tax rates and ensuring transparency in the taxation process. The bill also seeks to repeal 11 existing laws that currently govern the imposition and collection of taxes, marking a significant overhaul of the country's tax system.
Issa-Onilu noted that once passed, these reforms will modernize the Nigerian tax system and promote a more efficient and just framework for taxation. The bills are currently being reviewed by the National Assembly, and their passage is expected to be a major milestone in the country's economic development.
