{"id":7755,"date":"2025-05-09T06:29:27","date_gmt":"2025-05-09T06:29:27","guid":{"rendered":"https:\/\/shakamomodu.com\/?p=7755"},"modified":"2025-05-09T06:29:27","modified_gmt":"2025-05-09T06:29:27","slug":"senate-passes-landmark-tax-reform-bills-establishes-nigeria-revenue-service","status":"publish","type":"post","link":"https:\/\/shakamomodu.com\/index.php\/2025\/05\/09\/senate-passes-landmark-tax-reform-bills-establishes-nigeria-revenue-service\/","title":{"rendered":"Senate Passes Landmark Tax Reform Bills, Establishes Nigeria Revenue Service"},"content":{"rendered":"<p class=\"\" data-start=\"259\" data-end=\"538\">In a major legislative move, the Nigerian Senate has passed two critical tax reform bills \u2014 the <strong data-start=\"355\" data-end=\"408\">Nigeria Revenue Service (Establishment) Bill 2025<\/strong> and the <strong data-start=\"417\" data-end=\"457\">Nigeria Tax Administration Bill 2025<\/strong> \u2014 aimed at modernizing the nation\u2019s tax system and enhancing revenue generation.<\/p>\n<p class=\"\" data-start=\"540\" data-end=\"900\">The passage came after the Finance Committee, led by Senator Sani Musa, presented its comprehensive report. A clause-by-clause review saw the Senate <strong data-start=\"689\" data-end=\"730\">retain the 7.5% Value Added Tax (VAT)<\/strong> rate currently levied on goods and services, while redistributing tax revenue as follows: <strong data-start=\"821\" data-end=\"899\">55% to states, 35% to local governments, and 10% to the federal government<\/strong>.<\/p>\n<p class=\"\" data-start=\"902\" data-end=\"1131\">A key update defines \u201cderivation\u201d based on <strong data-start=\"945\" data-end=\"969\">place of consumption<\/strong>, ensuring VAT is returned to the state where the product or service was consumed. This reform is expected to improve transparency and fairness in tax allocation.<\/p>\n<p class=\"\" data-start=\"1133\" data-end=\"1167\">Additionally, the Senate approved:<\/p>\n<ul data-start=\"1168\" data-end=\"1600\">\n<li class=\"\" data-start=\"1168\" data-end=\"1266\">\n<p class=\"\" data-start=\"1170\" data-end=\"1266\">The <strong data-start=\"1174\" data-end=\"1224\">renaming of the Federal Inland Revenue Service<\/strong> to the <strong data-start=\"1232\" data-end=\"1265\">Nigeria Revenue Service (NRS)<\/strong>.<\/p>\n<\/li>\n<li class=\"\" data-start=\"1267\" data-end=\"1358\">\n<p class=\"\" data-start=\"1269\" data-end=\"1358\">A new <strong data-start=\"1275\" data-end=\"1299\">governance structure<\/strong> with a non-executive Chairman and Executive Vice Chairman.<\/p>\n<\/li>\n<li class=\"\" data-start=\"1359\" data-end=\"1499\">\n<p class=\"\" data-start=\"1361\" data-end=\"1499\">The establishment of a <strong data-start=\"1384\" data-end=\"1407\">Tax Appeal Tribunal<\/strong>, with expanded jurisdiction and professional qualification standards for tax commissioners.<\/p>\n<\/li>\n<li class=\"\" data-start=\"1500\" data-end=\"1600\">\n<p class=\"\" data-start=\"1502\" data-end=\"1600\">A new <strong data-start=\"1508\" data-end=\"1535\">Office of the Tax Ombud<\/strong> to handle public complaints and improve trust in the tax system.<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"1602\" data-end=\"1638\">The legislation empowers the NRS to:<\/p>\n<ul data-start=\"1639\" data-end=\"1895\">\n<li class=\"\" data-start=\"1639\" data-end=\"1711\">\n<p class=\"\" data-start=\"1641\" data-end=\"1711\">Review tax regimes in collaboration with relevant government agencies.<\/p>\n<\/li>\n<li class=\"\" data-start=\"1712\" data-end=\"1774\">\n<p class=\"\" data-start=\"1714\" data-end=\"1774\">Track, freeze, and seize proceeds from tax fraud or evasion.<\/p>\n<\/li>\n<li class=\"\" data-start=\"1775\" data-end=\"1895\">\n<p class=\"\" data-start=\"1777\" data-end=\"1895\">Impose structured penalties for tax-related offenses, including <strong data-start=\"1841\" data-end=\"1894\">failure to register, file returns, or remit taxes<\/strong>.<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"1897\" data-end=\"1981\">States and local governments will now receive VAT allocations based on new formulas:<\/p>\n<ul data-start=\"1982\" data-end=\"2106\">\n<li class=\"\" data-start=\"1982\" data-end=\"2051\">\n<p class=\"\" data-start=\"1984\" data-end=\"2051\"><strong data-start=\"1984\" data-end=\"1994\">States<\/strong>: 50% equality, 20% population, 30% place of consumption.<\/p>\n<\/li>\n<li class=\"\" data-start=\"2052\" data-end=\"2106\">\n<p class=\"\" data-start=\"2054\" data-end=\"2106\"><strong data-start=\"2054\" data-end=\"2075\">Local governments<\/strong>: 70% equality, 30% population.<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"2108\" data-end=\"2329\">The <strong data-start=\"2112\" data-end=\"2132\">Development Levy<\/strong> will continue funding key national initiatives, with allocations to <strong data-start=\"2201\" data-end=\"2218\">TETFUND (50%)<\/strong>, <strong data-start=\"2220\" data-end=\"2237\">NELFUND (15%)<\/strong>, <strong data-start=\"2239\" data-end=\"2254\">NITDA (10%)<\/strong>, <strong data-start=\"2256\" data-end=\"2272\">NASENI (10%)<\/strong>, <strong data-start=\"2274\" data-end=\"2296\">Cybersecurity (5%)<\/strong>, and <strong data-start=\"2302\" data-end=\"2328\">Defense Security (10%)<\/strong>.<\/p>\n<p class=\"\" data-start=\"2331\" data-end=\"2500\">The Senate also removed a controversial clause proposing a \u20a65 million fine for unauthorized disclosure of institutional documents, calling it draconian and self-serving.<\/p>\n<p class=\"\" data-start=\"2502\" data-end=\"2621\">This sweeping reform package sets the stage for a <strong data-start=\"2552\" data-end=\"2605\">stronger, fairer, and more transparent tax system<\/strong> across Nigeria.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a major legislative move, the Nigerian Senate has passed two critical tax reform bills \u2014 the Nigeria Revenue Service (Establishment) Bill 2025 and the Nigeria Tax Administration Bill 2025 \u2014 aimed at modernizing the nation\u2019s tax system and enhancing revenue generation. The passage came after the Finance Committee, led by Senator Sani Musa, presented [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":4000,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"Senate passes Nigeria Revenue Service and Tax Administration Bills to modernize tax laws and promote equitable VAT distribution.","_seopress_robots_index":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-7755","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts\/7755"}],"collection":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/comments?post=7755"}],"version-history":[{"count":1,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts\/7755\/revisions"}],"predecessor-version":[{"id":7758,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts\/7755\/revisions\/7758"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/media\/4000"}],"wp:attachment":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/media?parent=7755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/categories?post=7755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/tags?post=7755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}