The House of Representatives on Thursday adopted four tax reform bills after a detailed clause-by-clause review at the Committee of the Whole, chaired by Speaker Abbas Tajudeen.
A key decision from the session was the rejection of any increase in the Value Added Tax (VAT) rate, ensuring it remains at 7.5%. Lawmakers also approved a revised VAT distribution formula—50% based on equality, 20% on population, and 30% on consumption—following recommendations from the Nigerian Governors’ Forum (NGF).
Other notable amendments include replacing the term “ecclesiastical” with “religious” in a clause, maintaining funding for TETFUND, NASENI, and NITDA through development levies, and clarifying that inheritance before dissolution is not subject to taxation.
With the adoption of these bills, they are now set for a third reading, marking a significant step in Nigeria’s ongoing tax system reforms.
