House of Reps Yet to Decide on Tax Reform Bills – Speaker Abbas

• Speaker Abbas Tajudeen clarified that the House has not taken a formal position on the Tax Reform Bills under review
• The interactive session aims to address concerns, deepen understanding, and identify areas needing amendments in the proposed tax bills

The Speaker of the House of Representatives, Abbas Tajudeen, has clarified that the House has not yet taken a formal position on the Tax Reform Bills under review.

Speaking during an interactive session on the bills at the National Assembly in Abuja on Monday, Abbas stated that the House is committed to thoroughly examining the proposals and making necessary amendments.

The bills under consideration include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

Although the Presidency submitted the bills to the National Assembly last month, the National Executive Council (NEC) recommended their withdrawal due to controversies. However, President Bola Tinubu insisted the bills remain for review, encouraging stakeholders to contribute during the public hearing.

Abbas emphasized that the interactive session addresses concerns, deepens understanding, and identifies areas needing amendments or clarification.

“This engagement is crucial to ensure the bills align with the interests of the executive, legislature, sub-national governments, and the Nigerian people,” he said. “It will help identify areas requiring adjustment and evaluate the compatibility of these bills with the 1999 Constitution (as amended) and other relevant laws.”

The Speaker highlighted the importance of tax reforms in achieving sustainable economic growth and development. He noted Nigeria’s low tax-to-GDP ratio of 6%, which falls significantly below the global average and the World Bank’s benchmark of 15%.

“Taxes are the foundation of public revenue, enabling the delivery of essential services such as education, healthcare, infrastructure, and security,” Abbas explained. He stressed the need to address the country’s heavy reliance on debt financing and ensure fiscal stability.

The chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, also spoke during the session, highlighting Nigeria’s economic challenges. He noted that inflation stands at 33%, and 97% of revenue was spent on debt servicing in 2020.

Oyedele added that the Naira’s devaluation over the past decade outpaced that of the Kenyan Shilling and South African Rand, despite those countries having weaker economic indices in some areas. He called for stronger policy reforms to address these issues and improve Nigeria’s budget performance.

Both leaders emphasized the need for a balanced approach to tax reforms, ensuring the financial implications on all segments of society are carefully considered.