The Senate committee on finance has rejected the N6 trillion tax and import duties waivers proposed by the Federal Government in the 2023 budget, stating that wastages and leakages must be blocked, IgbereTV reports
Minister of Finance, Zainab Ahmed, was directed to cut down the tax waivers by half to N3 trillion, to offset the N12.43 trillion deficit of the N19.76 trillion proposed as expenditure for the 2023 budget.
Chairman of the committee, Solomon Adeola, told Ahmed on Tuesday during a panel meeting to review the proposed 2023-2025 medium-term expenditure framework and fiscal strategy paper (MTEF/FSP) that “The proposed N12.43 trillion deficit for the 2023 budget and N6 trillion waivers are very disturbing, and must be critically reviewed”.
Many of the beneficiaries of the waivers are not ploughing accrued gains made into expected projects as far as infrastructural developments are concerned”, he said, adding that, “The same goes for tax credit window offered by the FIRS to some companies.”
Ripples Nigeria had reported about five months ago, that 43 companies got tax waivers under the Industrial Development Income Tax (IDIT) Act, with Flutterwave losing out.
Revealing his displeasure, Adeola further stated that, “Billions and trillions of naira can be generated by the government as revenue if such windows are closed against beneficiaries abusing them and invariably provide required money for budget funding with less deficit and borrowings.
“The NCS should help in this direction by critically reviewing waivers being granted on import duties for some importers just as the FIRS should also review the tax credit window offered some companies without corresponding corporate social services to Nigerians in terms of expected project executions like road construction.
“We cannot accommodate this N6 trillion tax waivers. It is in this way that the committee frowns at the projected N12.41 trillion budget deficit contained in the 2023-2025 MTEF/FSP and the alarming projection of ‘no provision for treasury-funded MDAs’ capital projects in 2023.
“This scenario is unacceptable, and we must find ways to drastically reduce the deficit.” The lawmaker said.
However, Ahmed and the chairman of the Federal Inland Revenue Service (FIRS) Muhammad Nami, defended the tax waiver, stating that it was crucial to the development of the country, and it was only given to companies with project evidence.
Senate committee no longer wants borrowing, revenue generation left unchecked
Adeola also explained that millions had been saved by scrutinising the books of agencies, and more needs to be done in order to reduce the rising budget deficit
