The Nigerian government is to set up a committee to review the tax waivers currently being enjoyed by some individuals and organisations in the country.
Minister of Information and National Orientation, Mohammed Idris, disclosed this while briefing State House Correspondents at the end of a meeting of the Federal Executive Council, presided over by President Bola Tinubu.
Briefing Journalists at the end of this week’s meeting of the Federal Executive Council, Information and National Orientation Minister, Mohammed Idris said the government needs more revenue to be able to carry out development projects that would enhance the lives of all Nigerians.
He therefore, said the decision to critically take a look at the issue of waivers was in the best interest of the nation.
According to the Minister, “You recall that the Nigeria Customs Service had reported that in 2023 alone they have lost over N1.3 trillion to waivers. Council has decided to look at those waivers and review them so that Nigeria will not continue to lose money at a point where we all need these resources for the development of the country.”
The Information Minister announced that a special committee will filter the waivers currently being enjoyed and allow those backed by law to continue to exist.
“What Council agreed today is that a committee is going to work on that because some of these waivers actually are backed by law and therefore you can’t just wake up and say we are done with them.
“So, government will review that and see which ones are in the best interest of Nigeria and how to continue to allow them to function. The most important thing to note is that government is losing a lot of money in that direction and that is why this very critical decision has to be taken. Only those waivers that are backed by law will be allowed to subsist,” he added.
Tax waivers or exemptions are special considerations given to individuals or organisations to boost or encourage economic activities but at the same time, such waivers can reduce economic power because they are treated as forgone revenue.
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