The House of Representatives has adopted the Tax Reform Bills as a working document, confirming that Nigeria’s Value Added Tax (VAT) will remain at 7.5% for now.

Chairman of the Finance Committee, James Faleke, presented the report to lawmakers on Thursday, assuring that all contentious areas had been addressed. He also stated that VAT should be based on consumption.

As part of the reforms, the committee recommended replacing the Federal Inland Revenue Service (FIRS) with the Nigeria Revenue Service, which would oversee revenue collection for the Federal Government. Faleke expressed optimism that the new agency would enhance tax harmonization and administration.

Following deliberations, Speaker Tajudeen Abbas announced the adoption of the report, commending the committee’s efforts and highlighting that all 36 states and the Federal Capital Territory had representation in the sub-committee.

The Tax Reform Bills include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; and Nigeria Tax Bill, 2024.

The Nigeria Tax Bill proposes a gradual increase in VAT from 7.5% to 12.5% between 2026 and 2029, with a further rise to 15% by 2030.