Senate Passes Two Tax Reform Bills, Pegs VAT at 7.5%

The Senate has passed two out of four major tax reform bills proposed by President Bola Tinubu.

However, the upper chamber rejected a proposal to increase the value-added tax (VAT) to 10 percent, opting to retain the current rate at 7.5 percent.

The bill allows VAT input claims on fixed assets, overhead costs and administrative services.

The two bills passed are the Nigeria Revenue Service Establishment bill, which repeals the Federal Inland Revenue Service, and the Joint Revenue Board Establishment bill, which seeks to harmonise tax collection.

Two bills which the senate has scheduled for consideration and passage on Thursday are the Nigeria Tax Administration bill and the Nigeria Tax bill.

The passage of two bills on Wednesday followed a clause-by-clause consideration of the bills in the committee of the whole and a third reading on the floor of the senate.