Senate Approves Tax Reform Bills, Maintains 7.5% VAT, Introduces 4% Development Levy

• Senate passed four tax reform bills proposed by President Bola Tinubu.
• Bills include Joint Revenue Board Bill, Nigeria Revenue Service Bill, Nigeria Tax Administration Bill, and Nigeria Tax Bill.
• Senate rejected proposal to increase VAT rate to 10 percent, retaining it at 7.5 percent.
• Senate rejected phasing out funding for TETFUND, NITDA, and NASENI.
• Introduced a 4 percent development levy to replace funding for these agencies.
• Agencies deemed essential for human capital and economic development.
• Funding retained for TETFUND, NASENI, NITDA, Cyber Security, and NELFUND with a specific sharing formula.
• VAT rate remains at 7.5 percent, with VAT input allowable on various items.
• Company Income Tax rate set at 30 percent.
• Bills passed three months after House of Representatives approval.
• Senate set up a special committee to address controversies before referring to Committee on Finance.

Source: guardian.ng

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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