Senate frowns at N17trillion loss on Tax Waivers

By Iyojo Ameh

The Senate Committee on Finance has frowned at N17trillion loss incurred by the country on tax waivers within the last five years.

The red chamber consequently urged the Federal Inland Revenue Service ( FIRS) , to suspend the tax waivers as a result of alleged abuse and substitute it with rebating system.

Senate’s objection to the allegedly abused tax waivers came to the open during 2024 budget presentation of FIRS to its committee on Finance

In his remarks at the budget presentation session, the Chairman of the Committee, Senator Sani Musa 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 .

He told the Federal inland Revenue Service that its projection of N19 trillion as total tax collection for 2024 is good when compared to N11.16trillion achieved in 2023 adding that the senate believes that it can do more even to the tune of N30trillion if required measures are put in place.

Earlier ,the Chairman of FIRS, Zacch Adedeji who made the projection of N19 point 4trillion as targeted total tax collection for 2024, insisted that the fresh N2 point 7trillion Tax Credit planned for road construction in the country by the Nigerian National Petroleum Company Limited (NNPCL), should be stopped .