From Ndubuisi Orji, Abuja
House of Representatives has resolved to constitute an ad-hoc committee to investigate alleged abuse of tax incentives by public institutions and companies.
The committee is expected to report back to the House within for weeks for further legislative action.
This followed the adoption of a motion by Oluwole Oke, on the need to investigate alleged abuse of tax incentives by public institutions and companies.
Oke, in his lead debate, noted that available data indicates that abuse of tax incentives by government to public institutions and companies have been causing financial loses for the government.
He said: “These losses are occasioned and driven primarily by abuses by Companies that have been granted tax-based waivers and incentives based on available data, Nigeria continues to lose about N8 trillion annually to tax incentives and waivers. About N6 trillion is lost to companies that abuse the system, while N2trillion worth of waivers achieve’ the objective of the Federal Government. Most of the abuses arising from fiscal items like capital allowances, investment allowances, pioneer status incentives, free trade zone exemptions, Value Added Tax exemptions etc. These gaps have negatively affected the Nigeria Tax to-GDP ratio of Nigeria, which stands at 10.6 per cent, being one of the lowest in Africa. The gap created in the revenue profile of the Government of the Federation has also contributed to the Federal Government seeking loans, grants and aides to fund our budget deficit. If urgent steps are not taken to investigate the situations, Nigeria may not only be hanging on a fiscal cliff, it may fall off the cliff and be heading to Venezuela, which is a situation where a country has huge resources but is in deep economic crisis, recession and depression.”
Also, the House is to probe the utilisation of ecological fund releases to the National Agency for the Great Green Wall (NAGGVW), an agency under the Federal Ministry of Environment, from 2015 to date.
The House also resolved to set up an Ad-hoc Committee to undertake the investigation. The panel is also expected to probe all federal allocations to NAGGW, as well as contracts awarded to various contractors for the project from 2015 to date and report back to the House for further legislative action.
This followed the adoption of a motion by David Fuoh and three others, on “need to investigate the utilization of ecological funds released for the Great Green Wall, from 2015 to date, at Thursday’s plenary.
Fouh , in the lead debate, explained that the NAGGVW was “established to address land degradation and desertification and support communities to adapt to climate change in the Nigeria States of Sokoto, Kebbi, Katsina, Adamawa, Bauchi, Borno, Gombe, Jigawa,Yobe and Zamfara.