March 13, 2025
The House of Representatives Committee on Finance has amended some provisions of President Bola Tinubu’s tax bill to incorporate some concerns of stakeholders which were part of the outcome of the public hearing held in February.
Some of the changes made by the lawmakers include, the rejection of the proposed increase in value-added tax, VAT and discontinuation of funding for agencies such as the Tertiary Education Trust Fund, TETFUND, the National Information Technology Development Agency, NITDA, and the National Agency for Science and Engineering Infrastructure, NASENI, by 2030.
Presenting key amendments during consideration of the bill, Chairman of the committee, James Faleke, said the stakeholders recommended a reduction of the tax rate to 5%.
READ MORE; Governors Propose New VAT Sharing Formula To Back Tinubu Controversial Tax Reform.
The committee also proposed the retention of current VAT at 7.5%, a move the House has officially adopted. The Committee deleted the clause on the proposed introduction of inheritance tax as well as the proposal defending NASENI, TETFUND, and NITDA.
The committee recommended that operators of free trade zones must be limited to 75% for export and 25% outside the free zones before they would enjoy the tax benefits.
