The North Agenda for Tinubu (NAT) has thrown its weight behind President Bola Tinubu’s tax reforms.
The President has four tax reform bills currently before the National Assembly, which aimed at enhancing Nigeria’s fiscal stability and easing the tax burden on citizens.
These bills are: the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill.
They were created based on recommendations of the Presidential Committee on Fiscal Policy and Tax Reforms after a careful appraisal of the current tax system in the country.
The group noted that the objectives of the bills are clear: reduce the complexity and multiplicity of taxes, ease tax compliance, and enhance transparency and fairness within the system.
The group through its Publicity Secretary, Mohammed Yusuf Ajiji therefore urged the general public to consider the gains inherent in the bills.
Ajiji stated: “We recognize the public debate surrounding these bills, with some concerns voiced over potential tax rate increases. However, we wish to assure Nigerians that these reforms are designed to bring long-term relief to individuals, families, and businesses while establishing a streamlined, efficient tax system that promotes investment and growth.
“President Tinubu’s fiscal vision is clear: to build a modern, efficient tax system that fosters economic growth and uplifts all Nigerians. These bills not only fulfill his promises to streamline tax obligations and support small businesses but also provide tangible benefits to ordinary Nigerians, particularly in light of the current economic challenges.
“We urge all Nigerians to look closely at the details of these bills, recognizing the benefits and the solid foundation they lay for a prosperous future. We also call on the National Assembly to support these historic reforms, which signal President Tinubu’s unwavering commitment to “tax prosperity, not poverty.”
The statement also noted the Key benefits and highlights of the proposed tax reforms to include but not limited to the following: 1) Reducing the Multiplicity of Taxes: The Nigeria Tax Bill will harmonize the nation’s scattered tax laws into a cohesive Nigeria Tax Act, simplifying compliance and ending redundant tax obligations imposed by multiple agencies and levels of government. This action will offer immediate relief to small businesses and individual taxpayers.
Relief for Small Businesses: By classifying companies based on turnover and exempting those with a turnover under N50 million from Companies Income Tax (CIT), the proposed bill supports small businesses and encourages entrepreneurship—a priority for President Tinubu.
Exemptions on Essential Goods and Services: The bill introduces critical VAT exemptions for items that directly impact everyday Nigerians, such as food, healthcare, education, and transportation, showcasing the President’s commitment to easing the cost of living for ordinary citizens.
Enhanced VAT Policy: The bill also proposes improvements to the VAT refund process, ensuring refunds are issued within 30 days upon paperwork completion, reducing the burden on businesses and increasing liquidity.
Tax Equity Through Progressive Personal Income Tax: The proposed reforms align with progressive taxation principles, offering relief to low-income earners while maintaining fair contributions from higher earners. Only individuals with annual incomes exceeding N800,000 will be subject to personal income tax (PAYEE), providing a significant reprieve for low-income citizens.
Modernizing the Digital Economy: The Nigeria Tax Bill introduces a framework to regulate and tax digital currencies, ensuring Nigeria participates in the global digital economy while securing previously untapped revenue streams.
Streamlining Tax Administration: The Nigeria Tax Administration Bill and the proposed Joint Revenue Board (Establishment) Bill will standardize administrative procedures, reduce compliance burdens, and enhance inter-governmental coordination, promoting a more business-friendly environment.
Reforming the Federal Tax Authority: Finally, the Nigeria Revenue Service (Establishment) Bill proposes rebranding the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service, aligning its name and operations with its national tax mandate, especially in managing offshore transactions.
