The Nigerian House of Representatives has retained value added tax (VAT) at 7.5% and rejected a proposed staggered increase to 15% by 2030.
It also turned down the reintroduction of inheritance tax under the guise of taxation on family income.
After a week-long retreat, the ad hoc committee on tax reform bills presented its reports, which became the sole business of the day.
Committee chairman, james faleke, moved for the consideration of the reports and provided a synopsis of the recommendations.
For VAT revenue distribution, the house approved that 50% be distributed equally among states, 20% based on population, and 30% based on consumption, emphasizing the actual place of consumption rather than where returns are filed.
The House also proposed tax exemption on the personal income of military personnel in Nigeria.
The house also agreed to retain VAT at 7.5%, rejecting any staggered increase.
The Lawmakers including James Faleke, Deputy Chairman Saidu Abdullahi, and Chairman of the Committee on Defence, Jimmy Benson, spoke extensively in support of the committee’s efforts.
The Lower Chamber approved the appointment of one representative from each of the 36 states to the board of the nigeria revenue service establishment bill.
The Speaker, Abbas Tajudeen, commended the committee’s efforts, noting that there was no dissent among members. the house then carried out a clause-by-clause review of the recommendations on the four bills.
As nigerians await the passage of the bills and presidential assent, hopes remain high that the proposed reforms will positively impact lives and the nation’s economy.
