During a plenary session in Abuja, the Chairman of the House Committee on Finance, Rep. James Faleke, presented a report summarizing key amendments to four major tax reform bills. The report, developed through extensive public input, covers the following bills:
-Nigeria Tax Bill
– Nigeria Tax Administration Bill
– Nigeria Revenue Service (Establishment) Bill
– Joint Revenue Board (Establishment) Bill
Key Amendments in the Tax Reform Bills
Nigeria Revenue Service (NRS) Bill
– Refined Mandate: The NRS will focus solely on federal revenue collection, excluding individual taxpayers in states and the Federal Capital Territory (FCT).
– Board Composition: Section 7 stipulates that six executive directors, appointed by the president on a rotational basis, will represent the six geopolitical zones. Additionally, each state and the FCT will have a representative on the board.
– Secretary’s Qualifications: Section 13 requires the Board Secretary to be a lawyer, chartered accountant, or chartered secretary, with a rank of at least Assistant Director.
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– Fixed Funding Rate: The NRS will receive a 4% cost-of-collection fee (excluding royalties), subject to National Assembly approval.
– Restricted Borrowing Powers: Section 28 mandates that any loans secured by the NRS must first be approved by the Federal Executive Council (FEC) and the National Assembly.
Joint Revenue Board (JRB) Bill
– Revised Tax Appeal Commissioners’ Criteria: Section 25 removes the requirement for commissioners to have business management experience, as it was deemed unnecessary.
– Enhanced Independence for Tax Ombud: Section 43 ensures that the Tax Ombud’s Office is funded directly from the Consolidated Revenue Fund, eliminating reliance on external sources.
– Independent Funding for Tax Appeal Tribunal (TAT): The tribunal will now operate separately from the Federal Inland Revenue Service (FIRS) to prevent conflicts of interest.
– Stricter Adherence to Evidence Act: Tax appeal proceedings must now comply strictly with the Evidence Act.
– Extended Timeline for TIN Issuance: The period for issuing a Taxpayer Identification Number (TIN) is now five working days instead of two, allowing for administrative adjustments.
