…Decry abuse of tax incentives

From Ndubuisi Orji, Abuja

The House of Representatives has decried alleged abuse of tax incentives by companies, stating that it has dire consequences for the finances of the country.

Speaker Tajudeen Abbas, at the inauguration of  the Ad-hoc Committee to investigate allegations of abuse of tax incentives, tax breaks and tax waivers by public institutions and companies, said the probe is geared at addressing the issue.

Abbas noted that though  tax incentives were  essential tools used by governments to promote economic growth, attract investments and stimulate job creation, it is essential to ensure the incentives are not abused.

Consequently, the speaker, who was represented by the House Leader, Julius Ihonbvere, charged the panel to ascertain the level of abuse of tax incentives and identify loopholes that may have contributed to the abuse.

“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.

“Endeavour 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.

“The purpose of this investigation is to end all forms of economic sabotage and ensure transparency, accountability, and fairness in our tax system.”

Chairman of the committee,  Abubakar Makki Yalleman, said taxes  were necessary to enable government raise funds needed for development.

He said where there are leakages in the tax system, government is affected, thereby leading to borrowings which have attendant consequences for national development.

“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.”