Speaker of the House of Representatives, Abbas Tajudeen says the house has resolved to end economic sabotage and ensure transparency, accountability and fairness in the country’s tax system.
Abbas spoke at the inauguration of the Ad hoc committee investigating allegations of abuse of tax incentives, tax breaks and tax waivers by institutions and companies benefiting from tax incentives in Abuja on Thursday.
He informed the group that the purpose of the investigation is to end all forms of economic sabotage and ensure transparency, accountability, and fairness in the country’s tax system.
He called on all relevant stakeholders, including government agencies, public institutions, and companies benefitting from tax incentives, to cooperate fully with the committee’s investigation.
This, according to him, is for the house to have a full understanding of the tax system with a view to taking appropriate legislative actions.
He said the mandate of the committee was to examine the extent of the alleged abuse by public institutions and organisations.
He added that the committee would review relevant legislations, policies, and regulations governing these incentives to identify any loopholes or weaknesses that could have contributed to the alleged abuse.
Outlining the modus operandi to members, he said, when necessary, witnesses should be summoned and documents, requested in the conduct of hearings.
The Chairman of the committee, Rep. Makki Yalleman, in his response said the investigation has become necessary following tax abuses by institutions and organisations, among others.
According to him, taxes enable the government to raise the necessary funds for development, adding that the system of tax inflow is made narrow where taxes are inadequate, where there are leakages or infractions.
He also observed that government often resorted to borrowings which tends to undermine national development.
He 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 constraint.
He also pointed out that tax incentives were often granted to encourage businesses to thrive, thus contributing to the economy.
He however expressed concern that its abuse creates distortions in fiscal and monetary policy management.
According to him, with the nation experiencing dwindling fortunes in oil revenue and public debt approaching prohibitive levels amidst allegations of abuse of tax incentives, Nigeria needs to know the scope of tax incentives.
He said it is expedient to know the possible existence of abuses to enable proper administration of the tax breaks, waivers and incentives.
