✕ CLOSE Online Special City News Entrepreneurship Environment Factcheck Everything Woman Home Front Islamic Forum Life Xtra Property Travel & Leisure Viewpoint Vox Pop Women In Business Art and Ideas Bookshelf Labour Law Letters
Click Here To Listen To Trust Radio Live

N3trn revenue loss: Stop tax waivers, concessions, senators tell FG

The Senate Committee on Appropriations yesterday urged the federal government to stop the tax waivers and concessions granted to corporate entities. It said Nigeria was…

The Senate Committee on Appropriations yesterday urged the federal government to stop the tax waivers and concessions granted to corporate entities.

It said Nigeria was losing huge revenue to tax waivers and incentives.

It, however, suggested that all companies pay their taxes in full to the government coffers and then request for a rebate.

The chairman of the committee, Senator Adeola Olamilekan and other members stated this during an interactive session on the 2024 budget with the finance minister, Wale Edun and his counterpart from the Budget and Economic Planning, Atiku Bagudu.

Organ failure: Ikpeazu urges validation of folk medicine in Nigeria

Merger talks: PDP, NNPP, SDP, 4 others form coalition

The finance minister had told the panel that Nigeria lost about N3trn to tax waivers this year.

Senator Mohammed Sani Musa said the government should adopt the system of withholding taxes for tax waivers.

He said, “If you look at tax credits and the waivers, why can’t we adopt a system like what we are doing with withholding taxes? Withholding taxes is going into a fund. After a while, if you can prove that you have paid all your taxes, they pay you your rebate back. So, why can’t we do the same?”

Senator Ali Ndume said the government should be bold enough to stop the tax credits and waivers just as it did with the fuel subsidy.

He said, “I think we should be bold enough just like the president is very bold…Some people are taking advantage unnecessarily of Nigerians and benefiting to the detriment of Nigerians.”

Olamilekan said the committee had agreed that all taxes be paid to the coffers of the government and then corporate entities apply for rebates.

“Since this is a transition period, can we half it? The provision for these waivers should be reduced by 50%,” he said.

Edun, in his response, said the lawmakers’ advice would be looked into by the federal government’s fiscal policy and tax reform committee.

He said, “In trying to implement such a laudable policy, it’s important to look at the practicality and decide how it can be done, whether it can be done in one fell swoop, or whether there are some obvious exceptions.

“That has to be looked at, and the devil is in the details. But I think we’re all agreeing that we should try as much as possible to move to a rebate system rather than up-front granting of waivers and other incentives even including interest incentives.

“So, if somebody is going to be given a concessional interest rate, they pay the normal interest, carry out the transaction, and then they get a rebate.”

LEARN AFFILIATE MARKETING: Learn How to Make Money with Expertnaire Affiliate Marketing Using the Simple 3-Step Method Explained to earn $500-$1000 Per Month.
Click here to learn more.

AMAZON KDP PUBLISHING: Make $1000-$5000+ Monthly Selling Books On Amazon Even If You Are Not A Writer! Using Your Mobile Phone or Laptop.
Click here to learn more.

GHOSTWRITING SERVICES: Learn How to Make Money As a Ghostwriter $1000 or more monthly: Insider Tips to Get Started. Click here to learn more.
Click here to learn more.

SECRET OF EARNING IN CRYPTO: Discover the Secrets of Earning $100 - $2000 Every Week With Crypto & DeFi Jobs.
Click here to learn more.