The Speaker of Nigeria’s House of Representatives, Tajudeen Abbas has decried the abuse of tax incentives and waivers in Nigeria.
He described it as an act of economic sabotage which must not be allowed to continue.
The Speaker gave the condemnation while inaugurating the House Ad-hoc Committee To Investigate Allegations of Abuse Of Tax Incentives, Tax Breaks, and Tax Waivers By Public Institutions and Companies Benefitting From Tax Incentives.
Represented by the House Leader, Professional. Julius Ihonvbare, the Speaker said that the investigation by the House was to put an end to such acts of economic sabotage and ensure transparency, accountability and fairness in our tax system
He said tax incentives are an essential tool used by governments to promote economic growth, attract investments, and stimulate job creation.
The Speaker also said that it was crucial to ensure that these incentives offered by the government are utilized appropriately and not being misused or abused.
“The allegations that have been brought to the attention of the House suggest that some public institutions and companies may be taking advantage of these incentives for personal gain or to evade their tax obligations. Hence the establishment of this committee.
“In carrying out this investigation, the Committee is required to thoroughly investigate these allegations and provide recommendations for necessary sanctions and reforms.
“Endeavor to find out whether the beneficiaries of these tax incentives have lived up to the conditions attached to them and if they have fulfilled their obligations to the Nigerian people as required.
“Your mandate will be to examine the extent of the alleged abuse by public institutions and organisations, review relevant legislation, policies, and regulations governing these incentives to identify any loopholes or weaknesses that may have contributed to the alleged abuse.
“The purpose of this investigation is to end all forms of economic sabotage and ensure transparency, accountability, and fairness in our tax system.
“I, therefore, call on all relevant stakeholders, including government agencies, public institutions, and companies benefitting from tax incentives, to cooperate fully with the committee’s investigation for the House to have a full understanding of the tax system with a view of taking appropriate legislative actions,” the Speaker said.
The chairman of the Committee, Hon. Abubakar Makki Yalleman said taxes enable the government to raise the necessary funds needed for development.
According to him, where taxes are inadequate, where there are leakages or where infractions of the system lead to narrowing of tax inflow, the government resorts to borrowings which have attendant consequences for national development.
“Abuses of tax incentives by the supposed beneficiaries and the statutory institutions meant to regulate the tax regime could push the government into fiscal constraints.
“While tax incentives are granted to encourage businesses to stand well and be strong enough to contribute to the economy, its abuse creates distortions in fiscal and monetary policy management.
“As Nigeria experiences dwindling oil revenue and public debt approaches prohibitive levels amidst allegations of abuse of tax incentives, there is the need to know the scope of tax incentives and the possible existence of abuses to enable proper administration of the tax breaks, waivers and incentives,“ Makki said.
He said that the investigation was not a witch-hunting exercise, but a fact-finding mission that aims to correct the abuses in the management of tax incentives and ensure the right thing is done for the general good.
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