News
Tax Reform Bills Propose New Sharing Formula, Cede 55% to State Govt
- /home/naijuinz/public_html/wp-content/plugins/mvp-social-buttons/mvp-social-buttons.php on line 27
https://naijablitznews.com/wp-content/uploads/2024/11/IMG_4491-600x400-1.webp&description=Tax Reform Bills Propose New Sharing Formula, Cede 55% to State Govt', 'pinterestShare', 'width=750,height=350'); return false;" title="Pin This Post">
- Share
- Tweet /home/naijuinz/public_html/wp-content/plugins/mvp-social-buttons/mvp-social-buttons.php on line 72
https://naijablitznews.com/wp-content/uploads/2024/11/IMG_4491-600x400-1.webp&description=Tax Reform Bills Propose New Sharing Formula, Cede 55% to State Govt', 'pinterestShare', 'width=750,height=350'); return false;" title="Pin This Post">
The Senate on Thursday resumed its debate on the Tax Reform Bills, a set of four legislative proposals to increase value-added tax (VAT) distributable to the subnational governments to 55% while reducing the federal government’s share to 10%.
The new legislative regimes also proposed zero VAT on exports and essential consumptions by the masses and grant of input VAT credit on assets and services in addition to goods consumed by businesses to lower the cost of production
These far-reaching initiatives were contained in the lead debate of Leader of the Senate, Senator Opeyemi Bamidele on the Tax Reform Bills at the Senate Chamber, National Assembly Complex, Abuja yesterday.
The Federal Executive Council had proposed the Tax Reform Bills comprising the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024 and Nigeria Tax Bill, 2024.
The bills elicited spirited interests among key lawmakers and stakeholders across party lines, a situation that informed the leadership of the Senate to invite Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele and Chairman, Federal Inland Revenue Service, Dr. Zacch Adedeji to brief its plenary.
Leading debate at the plenary, Bamidele reeled out far-reaching proposals contained in the Tax Reform Bills, which according to him, aims at simplifying the tax landscape, reducing the burden on small business and streamlining how taxes are collected.
In the area of tax exemptions, Bamidele pointed out that those, whose salaries are not more than the minimum wage from Pay As You Earn (PAYE) deductions, would be exempted from the tax regime.
He also said small businesses with annual turnover of N50 million or less “are equally exempted from payment of taxes,” a key pro-business initiative that encourages job creation; deepens ease of doing business and incentivises more investments.
Similarly, the senate leader explained that there was a proposed huge reduction in company income tax from the current 30% to 25% that would last for at least two years.
He said: “As part of deliberate attempt to curtail the incidence of double taxation and multiplicity of taxes and levies, multiple taxes hitherto paid by companies under various tax heads namely 2.5% education tax, 0.25% NASENI tax have been harmonized into a development level of 2% which by 2030 will be applied to fund the newly established student loan scheme which will benefit many Nigerian youths.
“Unlike what is obtainable under the existing tax regime whereby the Federal Government takes a lion share of VAT revenues, it is proposed that the sharing formula should allow the State Government share 55% of VAT revenue from the current 15% to 10% sharing formula.
“However, Local Governments share of VAT revenue remains unaffected. Relatedly, basic items consumed by Nigerian households such as food items, medical services and pharmaceuticals, educational fees, electricity etc. are exempted from VAT.
“Again, as part of efforts to ease the administration of income taxes and levies across the Federation, there is a reasonable effort made to consolidate core tax statutes and related tax legislations,” Bamidele explained.
Contrary to misrepresentations in the public domain regarding the intendment of the Bills under consideration, Bamidele explained that the bills contained innovative and people-oriented proposals as part of the government’s deliberate fiscal and tax reform measures to cushion the effect of ongoing broader economic policies such as the removal of subsidy on petroleum products, renewed efforts to implement cost -reflective electricity tariffs in the power sector etc on Nigerian citizens.
In his contribution, former Chief Whip of the Senate, Senator Ali Ndume (Borno South) claimed that his problem was about timing and the issue of derivation.
He added that the Constitution of the Federal Republic of Nigeria, 1999 (as amended) must be amended before the Tax Reform Bills should take effect, therefore calling for its immediate withdrawal.
Ndume observed: “I am not against the reform, my problem is timing and the issue of derivation make the reform contagious. The 1999 Constitution has to be amended before the bills can be effective.”
However, the Chief Whip of the Senate, Senator Mohammed Munguno (Borno North) expressed strong objection to Ndume’s submissions, asking the Senate to disregard it and pass the bills for second reading.
Munguno urged the Senate to pass the bill into second reading, advocating that all areas of concern would be addressed at the public hearing stage.
After the debate that featured Chairman, Senate Committee on Finance, Senator Sani Musa and Chairman, Senate Committee on Ecology, Senator Seriake Dickson, the Senate unanimously passed the bills into second reading following Munguno’s final position.
In his remarks, the President of the Senate, Senator Godswill Akpabio referred the bill to the Senate Committee on Finance, advising the Committee to invite all the stakeholders to the public hearing to address all areas of concern.
News
Wike Slams Cardinal Onaiyekan over Alleged Political Bias in 2023 Elections
Federal Capital Territory (FCT) Minister Nyesom Wike has challenged the impartiality of Cardinal John Onaiyekan, accusing the Archbishop Emeritus of Abuja of taking sides during the 2023 general election.
Speaking during a media parley on Tuesday, Wike addressed the recent clash between the Presidency and Onaiyekan following the Catholic Bishops’ Conference of Nigeria’s (CBCN) closed-door meeting with President Bola Tinubu.
After the meeting, Onaiyekan publicly suggested that aides were painting a “rosy picture” for the President while he remained focused on 2027—a statement the Presidency criticized as an abuse of privilege.
Wike argued that religious leaders undermine their credibility when their commentary is purely negative.
While acknowledging that constructive criticism is valid, the minister insisted that leaders must also recognize government achievements to remain objective.
He said while it was appropriate to criticise the government where necessary, leaders should also recognise areas where progress had been made.
“If a religious leader is seen taking a side, it becomes difficult for people to see their comments as helpful. Onaiyekan’s political leanings in 2023 were not hidden.
“I am aware of the position of Cardinal Onaiyekan; all of us know, it’s not hidden, whom he supports; everybody knows that”.
“It’s not every time you say things are bad; nobody has heard you say the government has done this well.
“The point I am trying to make is that, as a leader, commend the government when it has done well in certain areas; criticise but acknowledge areas of progress ‘but you should improve in these other areas.”
He concluded that consistent, one-sided criticism naturally leads the government to view such remarks as politically motivated rather than objective advice.
“It’s not every time you say things are bad; nobody has heard you say the government has done this well”, Wike said.
News
President Tinubu should provide primary and secondary school details–ADC chieftain, Kalu
African Democratic Congress (ADC) chieftain Kalu Kalu has challenged President Bola Ahmed Tinubu to publicly provide details of the primary and secondary schools he attended following the release of presidential candidates’ personal particulars and credentials by the Independent National Electoral Commission (INEC) ahead of the 2027 general election.
Speaking on Channels Television’s Politics Today on Monday, August 3, 2026, Kalu queried the educational information submitted by the President, arguing that Nigerians deserve a clearer account of his academic background.
The ADC chieftain said his concerns were based on details contained in the nomination documents submitted to INEC, which he claimed raised fresh questions about Tinubu’s educational history.
President Tinubu’s failure to include details of his primary and secondary school education in the educational qualifications section of his INEC documents has sparked renewed public discussion over his academic records.
Kalu also referred to documents allegedly submitted by Tinubu during the 2022 election cycle, claiming that the President listed a National Youth Service Corps (NYSC) certificate among his credentials. He questioned the name and details contained in the document, alleging that they required further clarification.
According to him, the issues surrounding the President’s academic records should be addressed publicly to ensure transparency.
“Even in 2022, in the INEC document he submitted, he claimed he had a National Youth Service Corps (NYSC) certificate. And the name on that certificate was Bola Adekunle Tinubu. So where did he get ‘Adekunle’ from? He claimed he graduated, but the certificate was forged,” Kalu said.
The claims have added to ongoing public debate over the educational qualifications and eligibility of political candidates ahead of the 2027 presidential election.
News
Wike: Tinubu Only Leader With Courage to Fix Nigeria Now
Minister of the Federal Capital Territory (FCT), Barr. Nyesom Wike, has declared that President Bola Tinubu remains the only credible leadership option for Nigeria, insisting that no other potential presidential contender has demonstrated the courage or capacity to confront the country’s long-standing economic challenges.
Speaking at his monthly media briefing on Tuesday in Abuja, Wike defended Tinubu’s economic reforms, particularly the removal of petrol subsidy, describing the decision as the boldest taken by any Nigerian president in decades.
According to him, while the reforms have imposed temporary hardship on Nigerians, they have strengthened the finances of state governments, improved infrastructure funding and ended the era when states depended on bank loans to pay workers’ salaries.
“Asiwaju is the only person we have now. He has not done everything, and nobody says he has, but he has shown the courage to take decisions others refused to take. Give him credit for that,” Wike said.
The minister argued that Nigerians should not expect an economy weakened over many years to recover within a short period.
“When problems have accumulated for over 15 years, people expect them to be solved in one year. It doesn’t work that way. Healing takes time, but it will happen,” he said.
Wike described the fuel subsidy regime as “a cancer,” recalling that as governor, he had to rely on bank borrowing to meet salary obligations because of declining allocations to states.
“The fuel subsidy consumed over ₦3 trillion at a time. Today, states receive more money. Pensioners are being paid, governors no longer queue before bank managers to borrow money just to pay salaries, and there are more resources for infrastructure,” he said.
He maintained that leadership is defined by the willingness to make difficult decisions rather than by popular sentiment.
“Everybody agreed that subsidy was a scam, but no president had the political will to remove it. President Tinubu took that decision. No decision is 100 per cent perfect, but leadership is about taking responsibility,” he added.
-
News11 hours agoAdeleke kicks as IG returns CP Gotan to Osun ahead of governorship poll
-
Metro11 hours ago21-Year-Old Nigerian Basketball Player Arrested in U.S. Over First-Degree Rape Charge
-
News10 hours agoRep OK Chinda’s political network sparks across Rivers
-
News24 hours agoHealing at Home: NOHSONIC Brings World-Class Physiotherapy Within Nigerians’ Reach
-
Foreign11 hours agoMan Jailed for Keeping His Mom’s Dead Body in a Freezer for Nearly 3 Years While Receiving Her Financial Benefits
-
News23 hours agoFirst Lady hails Wike’s green transformation of Abuja, urges states to engage youth in environmental protection(Photos)
-
News11 hours agoOyo 2027: Busari Drags Accord, Hamzat to Court Over Governorship Ticket
-
Politics11 hours agoFocus on Winning Osun, Everything Else Can Wait – Uzodinma to APC Campaign Team

Warning: Undefined variable $user_ID in /home/naijuinz/public_html/wp-content/themes/zox-news/comments.php on line 49
You must be logged in to post a comment Login