The Senate at plenary Wednesday passed two of the tax reform legislations, namely the Nigeria Revenue Service (Establishment) Bill, 2025 and the Nigeria Tax Administration Bill 2025.

This followed the presentation and consideration of the report of its Committee on Finance chaired by Senator Sani Musa.

After the clause by clause consideration of the two bills, the red chamber retains the 7.5% being collected by the Federal Government from consumers of goods and services as Value Added Tax (VAT).

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The Red chambers approved that the Federal Government should be entitled to 10 per cent of the total revenue collected as taxes while the states and local governments get 55 per cent and local governments, 35 per cent respectively.

The proposed legislation defined derivation as place of consumption of products and services.

It clarified that states where any product is consumed would be the beneficiary of the VAT collected on such item.

Apart from this, the Senate okayed the establishment of the Tax Appeal Tribunal

It approved the renaming of the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS).

Similarly, it approved the constitution of the board of directors for the proposed NRS with a non executive Chairman heading the board of the agency while the Chief Executive Officer would be addressed as the Executive Vice Chairman.

The Senate also okayed a two per cent cost of production for the proposed NRS from the funds collected from the oil and non oil sectors.

It explained that the Tax Appeal Tribunal shall be funded through the Consolidated Revenue Fund, as may be appropriated by the National Assembly, towards the execution of its functions under the Act.

It provided a clearer, more structured, and professional qualification standards for Tax Appeal Commissioners, promoting efficiency and credibility in tax dispute resolution.

More details later....