The Nigeria Extractive Industries Transparency Initiative, NEITI, has expressed its support for the 2024 Tax Reform Bill currently under consideration by the National Assembly, emphasizing its potential to revamp the country’s tax system.
In a statement issued on Tuesday by NEITI’s Acting Director of Communications & Stakeholders Management, Obiageli Onuorah, the agency disclosed that its stance was detailed in a memo signed by its Executive Secretary, Dr. Orji Ogbonnaya Orji.
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The memo was addressed to the leadership of the National Assembly and the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.
Dr. Orji highlighted that the proposed bill could enhance Nigeria’s tax administration and broaden its tax base to align with global standards.
He noted that NEITI’s conclusions were based on a thorough examination of the draft legislation, which reflects extensive research and stakeholder engagement to develop its innovative provisions.
As stated by NEITI, the draft tax bill focuses on consolidating legal frameworks, taxing digital assets, addressing issues related to resident and non-resident taxation and implementing strategies to reduce tax evasion.
The bill also demonstrates a commitment to promoting fiscal transparency and efficiency.
“A detailed review of the Bill revealed that it has the potential to impact positively on revenue generation, household livelihoods, job creation and overall economic opportunities,” the transparency and accountability agency stated.
As an organization with vested interests in the draft legislation, NEITI noted that “the public debate generated by the Bill underscored the overwhelming public interest by Nigerians and the need for greater clarity and trust in its provisions after it is finally passed into law.”
While acknowledging the bill’s potential, NEITI explained that its section-by-section analysis of the draft law revealed both its strengths and areas requiring improvement, particularly in relation to the extractive industries, which fall under NEITI’s mandate. The agency subsequently made several recommendations to address these gaps.
NEITI pointed out that Sections 1 and 2 of the bill aim to establish a unified tax framework across Nigeria for all individuals and legal entities.
However, the provisions lack clear guidelines on harmonizing federal and state tax laws or defining the roles of subnational governments.
Commending the bill’s objective of unifying tax administration by repealing existing laws and consolidating them into a single framework, NEITI emphasized the importance of “careful management of the transition process and robust public awareness campaigns to avoid administrative confusion.”
Crediblenewsng.com
