Key stakeholders, including the Supreme Council for Shari’ah in Nigeria (SCSN), the FCT Imams Initiative, and the Kano State government, have raised objections to certain provisions in the proposed tax reform bills.
Their concerns were voiced during a public hearing organized by the House of Representatives Committee on Finance.
The proposed legislation—comprising the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, the Joint Revenue Board Bill, and the Nigeria Tax Bill—has passed a second reading in both chambers of the National Assembly.
Prof. Ahmed Dogarawa, representing the Shari’ah Council, acknowledged the need for tax reforms but strongly opposed the inheritance tax, stating, “Taxing inheritance in this manner would create unnecessary tension and legal challenges.”
He urged lawmakers to revise the bill to exempt estates distributed under religious personal laws, including Shari’ah law.
Similarly, Umar Aliyu, Chief Imam of Banex Mosque and representative of the FCT Imams Initiative, rejected taxation on religious institutions, arguing that such a policy would impose financial strain on faith-based organizations and hinder their charitable work.
He also opposed an increase in Value-Added Tax (VAT), recommending it be reduced to five per cent or maintained at the current 7.5 per cent.
Aliyu further criticized a clause in the bill that seeks to end funding for key agencies, including the Tertiary Education Trust Fund (TETFund), National Agency for Science and Engineering Infrastructure (NASENI), and National Information Technology Development Agency (NITDA) by 2030.
Former presidential adviser Auwalu Yadudu raised constitutional concerns, warning that the repeated use of “notwithstanding” in the bills could undermine the supremacy of the 1999 Constitution.
He also criticized the proposed National Revenue Service Board for lacking adequate federal representation, stating that each state should have a seat to reflect the country’s federal structure.
Mahmud Sagagi, representing the Kano State government, expressed support for tax modernization but cautioned that certain provisions could erode state autonomy, infringe on constitutional rights, and destabilize the economy.
The public hearing underscored widespread opposition to aspects of the tax reforms, with stakeholders urging lawmakers to reconsider provisions that could conflict with religious laws, constitutional principles, and state governance.
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