The Senate Committee on Finance has raised concerns over the staggering loss of N17 trillion incurred by the federal government in tax waivers over the past five years.
Expressing discontent during the 2024 budget presentation of the Federal Inland Revenue Service (FIRS), the committee urged FIRS to halt the current tax waiver system and consider implementing a rebating mechanism.
Senator Sani Musa, the committee’s chairman, emphasized the abuse of tax waivers, advocating for their suspension and substitution with a more effective strategy.
Musa proposed discontinuing the N2.7 trillion tax credit allocated to the Nigerian National Petroleum Company (NNPC) Limited, redirecting these funds towards national road construction projects.
FIRS Chairman Zacch Adedeji, while presenting a targeted tax collection of N19.4 trillion for 2024, echoed the sentiment to halt the N2.7 trillion tax credit allocated for road construction by NNPC.
Adedeji highlighted the necessity for tax reforms, emphasizing the need to streamline the multitude of taxes currently in place across Nigeria.
He stressed the importance of exhaustively implementing the existing N2.5 trillion tax credit scheme before considering any new proposals, asserting that not all NNPC revenue should be allocated to infrastructure projects, as there is a designated Ministry of Works responsible for such endeavors.
