Senate To Consider Tax Reform Bills After Sallah And Easter Break

The Leader of the Senate, Senator Opeyemi Bamidele (APC, Ekiti Central), has announced that the Senate will prioritize the Tax Reform Bills 2024 upon resumption after the Sallah and Easter holidays.

Bamidele assured Nigerians that the upper chamber would take immediate action on the bills once the holiday period concludes.

Naijaonpoint reports that the Senate leader made the announcement during an empowerment programme in Ado Ekiti, Ekiti State, on Thursday.

Bamidele also reiterated that the ongoing review of the 1999 Constitution (as amended) is progressing smoothly. He emphasized that the goal of the constitutional review is to create a more efficient and responsive governance system for the country once the process is completed.

In a statement released by his Directorate of Media and Public Affairs, Bamidele reflected on the Senate’s ongoing legislative initiatives since its inauguration on June 13, 2023.

He highlighted efforts aimed at strengthening the country’s democracy and stabilizing the economy.

“The urgent need to strengthen our economy is clear,” Bamidele said, pointing to the Senate’s focus on developing legal frameworks to stabilize the fiscal and monetary spaces, prioritize security, address inflation, and create functional governance structures.

Bamidele also spoke on the Tax Reform Bills 2024, describing them as “game changers” for Nigeria’s fiscal environment. He emphasized that the bills aim to address the inequalities and injustices in the current tax system.

Under the proposed tax regime, individuals earning ₦1,000,000 or below annually will be completely relieved of taxes.

Businesses with a capital of ₦50 million or less will enjoy tax exemptions, and essential goods and services such as food, education, transportation, and medical treatment will no longer attract Value Added Tax (VAT).

The proposed tax reforms also include a tax rate of 27.5% in 2025 and 25% in 2026. Bamidele pointed out that these rates are lower than those in South Africa (27%) and Kenya (30%), based on development data.

He assured Nigerians that the House of Representatives had already passed the bills, and that the Senate would address any public concerns once the bills are reviewed.

Bamidele reaffirmed the Senate’s commitment to reviewing the 1999 Constitution, emphasizing that the aim is to create a more efficient and responsive governance system that serves all Nigerians, irrespective of political bias, ethnicity, or religion.

Furthermore, Bamidele stressed the Senate’s efforts to boost foreign direct investments, which he believes will positively impact Nigeria’s foreign exchange earnings and stabilize the macro-economic environment.