Nigeria's Senate Advances Major Tax Overhaul
Nigeria's Senate has passed four significant tax reform bills, a crucial part of President Bola Tinubu's agenda to increase government revenue. The reforms, which have faced internal opposition, include an increased value-added tax and amendments to the oil law, aiming to improve Nigeria's tax-to-GDP ratio.
Nigeria's Senate made strides on Friday by passing four tax reform bills, a move designed to enhance government revenue as President Bola Tinubu's administration pushes forward with economic reforms. This legislative effort is a key aspect of Tinubu's strategy to reengineer the nation's fiscal policies.
Though critics argue that the reforms, which feature a hike in the value-added tax from 7.5% to 12.5%, could exacerbate economic difficulties for Nigerians, the government's objective is to improve the tax-to-GDP ratio, currently at a low 10.8%. This change aims to reduce the country's dependence on loans for budget funding.
The passage, amid resistance from within Tinubu's All Progressives Congress, marks a significant victory for the president. Senator Sani Musa, leader of the Senate committee reviewing the bills, announced that included amendments reposition fiscal administrative responsibilities concerning oil royalties and taxes to the proposed Nigeria Revenue Service.
(With inputs from agencies.)
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