Tax Reform Bills on track for passage as Senate, FIRS clear key hurdles

Momentum is building in the Senate for the passage of critical tax reform bills, as key stakeholders signal consensus on previously contentious issues. This comes as the voices against the bills, especially from the North, have remained adamant, insisting they should be withdrawn.

Senator Abba Moro, Chair of the Senate’s Ad-hoc Committee on Tax Reform, disclosed on Monday that public hearings on the bills will soon be held, paving the way for a third reading.

Following a closed-door meeting with top officials, including Attorney General of the Federation Lateef Fagbemi (SAN), Federal Inland Revenue Service (FIRS) Chairman Zacch Adedeji, and other fiscal policy leaders, Moro expressed optimism about the progress made.

Speaking to journalists, Senator Moro highlighted the collaborative effort to harmonise the tax reform process.

“We’ve engaged with the Attorney General, the FIRS Chairman, and other stakeholders to synthesize our positions. Our goal is to deliver a law that truly serves all Nigerians,” Moro said.

While Moro did not provide specifics on the changes made, he assured that substantial progress had been achieved, and further meetings would finalise the framework.

FIRS Chairman Zacch Adedeji reinforced the positive outlook, stating that most contentious issues in the bills have been resolved.

“All the so-called grey areas were identified and clarified during the discussions. The engagement has been very productive, and I can confidently say we are on the right track,” Adedeji said.

He added that the bills are critical to modernising Nigeria’s tax framework and ensuring better revenue mobilisation.

“To the best of my knowledge, everyone involved agreed on the importance of these reforms,” Adedeji noted.

Overview of the Tax Reform Bills
The proposed tax reform package, consisting of four bills, aims to overhaul Nigeria’s tax administration and revenue collection processes:

1. Nigeria Tax Bill (NTB) 2024 – Streamlines tax policies to create a more business-friendly environment.

2. Nigeria Tax Administration Bill (NTAB) 2024 – Establishes a modernized framework for tax collection and compliance.

3. Nigeria Revenue Service (Establishment) Bill (NRSEB) 2024 – Formalizes the operational structure of the Federal Inland Revenue Service.

4. Joint Revenue Board (Establishment) Bill (JRBEB) 2024 – Enhances coordination between federal and state revenue agencies.

The bills, which passed their second reading in November 2024, are expected to enhance efficiency, boost revenue, and simplify compliance for businesses and individuals.

The Senate Committee on Tax Reform plans to hold public hearings soon, giving Nigerians an opportunity to contribute to the finalization of the bills. Stakeholders remain optimistic that the reforms will be enacted within the first quarter of 2025, marking a significant milestone in Nigeria’s fiscal policy.

If passed, the bills could herald a new era of tax efficiency and fiscal sustainability, reducing Nigeria’s reliance on oil revenue and addressing long-standing issues in tax administration.