The speaker of the House of Representatives, Hon Tajudeen Abbas has said the abuse of tax incentives and waivers is an act of economic sabotage which must be discontinued.
Abbas stated this yesterday at the inaugural meeting of the Ad-hoc Committee, investigating allegations of abuse of tax incentives, tax breaks, and tax waivers by public institutions and companies benefitting from tax incentives.
The speaker who was represented by the House leader, Hon Julius Ihonvbere, said the investigation was to put a stop to such acts of economic sabotage and entrench transparency, accountability, and fairness in the country’s tax system.
According to him, tax incentives are essential tools deployed by governments to promote economic growth, attract investments, stimulate job creation which must be used appropriately and not 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.
“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,” he said.
In his remarks, the Ad-hoc Committee’s chairman, Hon Abubakar Makki Yalleman said abuse of tax incentives by the supposed beneficiaries and the statutory institutions meant to regulate the tax regime could push the government into fiscal constraints.
He said: “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”.
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