Janet Samuel, Abuja
The Senate Committee on Finance has frowned at N17 trillion loss incurred by the country on tax waivers in the last five years.
It consequently urged the Federal Inland Revenue Service ( FIRS) , to suspend the tax waivers being largely abused and substitute it with rebating system.
Senate’s objection to the allegedly abused tax waivers came to the fore during 2024 budget presentation of FIRS to its committee on Finance .
In his opening remarks, the Chairman of the Committee, Senator Sani Musa of Niger East, told the FIRS Chairman that tax waivers abuse which has cost the country about N17trillion loss within the last five years should be suspended and substituted with rebating system .
” Your projection of N19trillion as total tax collection for 2024 is good when compared to N11.16trillion achieved in 2023 but the senate believes that you can can do more even to the tune of N30trillion if required measures are put in place.
” As impressive and encouraging the performance and projections of FIRS are , under your leadership , this committee and by extension , the Senate , on a serious note , urge you to look at the direction of tax waivers largely being abused with attendant and avoidable losses being incurred on yearly basis .
” Available records , show that within the last five years , about N17trillion have been lost by the country to tax waivers .
” It should be suspended and possibly substituted with rebating system “, he said .
Earlier in his presentation, the Chairman of FIRS, Zacch Adedeji who made projection of N19 .4trillion as targeted total tax collection for 2024, insisted that the fresh N2 .7trillion Tax Credit planned for road construction in the country by the Nigerian National Petroleum Company Limited (NNPCL), should be stopped .
The FIRS Chairman , informed that, ‘to save Nigerians from multiple taxation , FIRS in collaboration with committee set up by the President Bola Tinubu , would reduce the 62 different taxes to 8.
On controversy trailing the implementation of Tax Credit Scheme for road construction by NNPCL, the FIRS boss insisted that the N2.5trillion earlier committed to it , must be fully implemented before thinking of any fresh one.
In his contribution, the Senator representing kogi East Senatorial District, who is also the Chairman Senate Committee on Custom urged FIRS to develop a plan to capture the informal sector in tax payments as they are also beneficiaries of public facilities.
