The Nigerians Senate has rejected the 10 percent proposition in the Tax reform Bill sent to the Assembly by President Bola Ahmed Tinubu. The upper chamber insist that the current 7.5 percent must be maintained.
The senators rejected the 10 percent VAT proposed by the president after they passed the Bill, sent to the National Assembly last December by the president.
The bill has been trailed with serious controversy as it has polarised the country. along regional lines, the major opposition came from the North which claimed that the region will be shortchange in the new tax regime.
The Senate however passed the Tax Bill on Wednesday, containing four tax reform bills which are the Joint Revenue Board (Establishment) Bill, 2025 (SB. 583); the Nigeria Revenue Service Establishment) Bill, 2025 (SB. 584); Nigeria Tax Administration Bill, 2025 (SB. 585); and Nigeria Tax Bill 2025 (SB. 586).
Apart from the rejecting increase in VAT the Senate also rejected the idea of phasing out funding for Tertiary Education Trust Fund, TETFUND, National Information Technology Development Agency, NITDA, and National Agency for Science and Engineering Infrastructure, NASEN.
The Senate rather introduced a four per cent development levy to from which the Agencies will be funded, after it noted that the agencies are necessary for human development ans should not be scrapped.
Recall that the major Academic Unions in the country, had kicked against the scrapping of the TETFUND, saying the state of infrastructure in Nigeria’s Higher Institutions will worsen if the agency is scrapped as had been proposed by the president.
“These agencies of government are essential for human capital and overall economic development of the country,” the Senate said yesterday, adding that ‘phasing out their funding can lead to stagnation in education and the country losing out in technological evolution and advancement.”
The Senate: “The bill retained the funding of TETFUND, NASENI, NITDA, Cyber Security and NELFUND from the Development levy using the following sharing formula: Tertiary Education Trust Fund, 50%; Nigerian Education Loan Fund, 15%; National Information Technology Development Fund,- 10%; National Agency for Science and Engineering Infrastructure 10%; National Cybersecurity Funds – 5%; and Defence Security Funds,- 10%.”
On VAT, the Senate said, “The Bill retains the current VAT rate of 7.5%, and proposes for VAT input to be allowable on all items such as: fixed assets, overhead cost and administrative services.”
The House of Representatives had earlier in March passed the Bill. Both Chambers will now have to meet for concurrence before the Bill is sent to the president for his assent.
Discover more from The Source
Subscribe to get the latest posts sent to your email.
