The chairman of the presidential committee on tax policy and fiscal reforms, Taiwo Oyedele, has revealed that the much-anticipated tax reform bills are expected to be passed into law by the first quarter of 2025.
Naija News understands that Oyedele disclosed this on Saturday while speaking at The Platform, a national development-focused event organized by The Covenant Nation.
He said the tax reforms will be implemented in July 2025, giving taxpayers ample time to prepare for the changes.
He stated, “Our expectation is that the tax reform bills will be approved by the end of Q1 2025.
“We want to ensure taxpayers are given enough notice to prepare themselves and build the necessary capacity, with implementation starting around July 1.”
In October 2024, President Bola Tinubu forwarded four key tax reform bills to the National Assembly for consideration and passage. The proposed legislations include:
– Nigeria Tax Bill;
– Tax Administration Bill;
– Joint Revenue Board Establishment Bill;
– The repeal and replacement of the Federal Inland Revenue Service (FIRS) with the Nigeria Revenue Service.
The tax reforms aim to streamline Nigeria’s fiscal policies and address inefficiencies within the tax system.
Governors Back VAT Sharing Formula
Meanwhile, the Nigerian Governors’ Forum (NGF) has thrown its weight behind the tax reform bills. The forum also proposed a new equitable value-added tax (VAT) sharing formula as part of the reforms.
The suggested formula allocates 50% based on equality, 30% on derivation, and 20% on population.
This proposal was discussed during a meeting between the NGF and the presidential tax reform committee on January 16, 2025.