The House of Representatives, on Thursday, deliberated on and adopted four significant tax reform bills after a thorough clause-by-clause review at the Committee of the Whole, presided over by Speaker Abbas Tajudeen.
Having secured the approval, the bills are now set for a third reading on the next legislative day before final passage.
Most of the contentious provisions that had previously sparked debate were resolved by the committee overseeing the reports, ensuring a smooth adoption process.
One of the key clauses considered and adopted was the Value Added Tax (VAT) distribution formula, which now follows a structure of 50% based on equality, 20% on population, and 30% on consumption—an approach initially suggested by the Nigerian Governors’ Forum (NGF).
The House also dismissed the proposal for a gradual increase in VAT rates, opting instead to maintain the existing 7.5% rate.
Additionally, lawmakers voted to remove the term “ecclesiastical” from one of the clauses, replacing it with “religious” to avoid controversy.
Another critical decision was the approval of continuous funding for agencies such as TETFUND, NASENI, and NITDA through development levies.
The contentious clause on inheritance tax was also adjusted, clarifying that inheritance acquired before dissolution cannot be taxed.
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