The Chartered Institute of Taxation of Nigeria (CITN) has publicly endorsed the tax reform bills currently under consideration by the National Assembly, asserting that these legislative changes have the potential to invigorate the country’s economy. The endorsement was articulated by Samuel Agbeluyi, President and Chairman of the CITN Council, during a recent workshop aimed at educating tax and finance reporters in Lagos. The tax bills, transmitted to the National Assembly on October 3, 2024, by President Bola Tinubu, have sparked considerable debate throughout Nigeria, prompting divergent opinions among various stakeholders, many of whom have expressed both support and opposition to the proposed reforms.
Agbeluyi emphasized the importance of monitoring and engaging with the current government’s efforts related to taxation and fiscal policy alterations since its inauguration in May 2023. He highlighted that the government has shown a strong political resolve to reform the nation’s tax system significantly, not only to reduce the economy’s reliance on oil revenue but also to enhance fiscal stability. The reforms stem from the output of the Presidential Committee on Fiscal Policy and Tax Reforms, which conducted extensive analysis and research. Consequently, the Economic Stabilisation Bills presently under legislative examination signify a pivotal step in addressing some of the systemic inefficiencies that have plagued Nigeria’s tax framework.
The CITN President acknowledged that fundamental tax reforms often generate a mix of reactions and apprehensions from various stakeholders. Nonetheless, he underscored the necessity of these reforms during the current period in Nigeria’s socio-economic landscape. He expressed confidence that the proposed tax bills would facilitate significant improvements in the tax sector and create a conducive environment for business operations. Agbeluyi called for stakeholders to base their concerns on empirical data, underscoring the importance of informed discourse surrounding these legislative changes.
Moreover, he noted that the CITN has been active in the reform process, having contributed feedback during the drafting of the bills. While the institute is supportive, it also has specific observations that it plans to present during the public hearings scheduled for the bills. This demonstrates a commitment to constructive engagement in the legislative process, ensuring that the reforms are not only well-informed but also representative of the broader perspective within the taxation community.
However, the legislative momentum behind the tax reform bills faced a setback when the Senate recently decided to suspend action on the proposals. This decision came amid a growing chorus of complaints from stakeholders regarding the over 65 different taxes currently levied in Nigeria, with calls to streamline and simplify the tax system significantly. The Senate has instructed its Committee on Finance to hold off on public hearings related to the tax reforms until the various concerns raised by the public and stakeholders are adequately considered and addressed. This pause indicates a recognition of the need for greater scrutiny and dialogue regarding the proposed changes.
In light of these developments, the Senate has also established a special committee to engage directly with the executive branch in resolving the issues and discontent surrounding the tax reform bills. This move reflects an acknowledgment of the contentious nature of the proposed reforms and the necessity for a collaborative approach to achieve a sustainable resolution that meets the expectations and needs of both the government and the citizens. As these discussions unfold, the CITN remains hopeful that constructive dialogue will lead to refining the bills, ultimately resulting in a more effective and equitable tax system in Nigeria.
