Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms (PFPTRC), has revealed that the Finance Act will become “null and void” once the new Tax Reform Bills are passed into law. Speaking at a virtual session with tax consultants and chief financial officers (CFOs) on the committee’s proposed tax reforms, Oyedele explained that the bills would bring clarity and consistency, moving away from the current practice of frequent Finance Act amendments.
“The Finance Act introduces too much uncertainty,” Oyedele said, stressing the government’s decision to avoid another Finance Act in 2024. He added that the committee had advised against introducing new Finance Acts as they create unpredictable shifts in the tax landscape, forcing businesses and individuals to constantly adapt. With the new tax reform laws, he emphasized that Nigeria will see a more stable tax environment for the next five years, without the need for annual revisions.
Oyedele also pointed out that any provisions from previous Finance Acts not included in the reform bills will become irrelevant once the new laws are passed. He reassured stakeholders that everything currently in place has been carefully reviewed and incorporated into the proposed bills. “If something is missing from the new reform bills, it means it’s not intended to exist after the laws are passed,” he explained.
The new tax reform bills are designed to provide a solid foundation for Nigeria’s tax system, which will be reviewed every five years to ensure it meets the nation’s evolving needs. Oyedele’s statement signals a move towards long-term fiscal policy, aiming to enhance predictability, foster business confidence, and attract investment, all while streamlining the nation’s tax framework.
This shift is expected to simplify the tax process for businesses, providing much-needed clarity and stability, especially for MSMEs navigating Nigeria’s complex tax environment. The committee’s focus on a five-year review cycle indicates a commitment to maintaining a modern, adaptable, and transparent tax system for the country’s economic growth.
