The Senate Committee on Finance expressed serious concern over the staggering N17 trillion loss incurred by the country due to tax waivers in the last five years.
During the 2024 budget presentation of the Federal Inland Revenue Service (FIRS) to the committee, senators called for the suspension of tax waivers, citing widespread abuse. Instead, they proposed implementing a rebating system to mitigate further losses.
FIRS Chairman, Zacch Adedeji, presented a targeted total tax collection projection of N19.4 trillion for 2024.
However, he faced scrutiny over the proposed N2.7 trillion Tax Credit for road construction, which the committee deemed unnecessary in light of existing commitments by the Central Bank of Nigeria (CBN).
Chairman of the Senate Committee on Finance, Senator Sani Musa (APC Niger East), emphasized the need for FIRS to maximize revenue collection, suggesting a potential increase to N30 trillion with proper measures in place.
He urged FIRS to address the abuse of tax waivers, which has contributed significantly to the country’s financial losses.
Furthermore, FIRS revealed plans to streamline taxation by reducing the current 62 different taxes to just eight, in collaboration with a committee established by President Bola Tinubu. This initiative aims to alleviate the burden of multiple taxation on Nigerians and enhance revenue efficiency.
Despite acknowledging the importance of the Tax Credit Scheme for road construction, FIRS asserted that the N2.5 trillion already allocated to the program must be fully utilized before considering additional funding.
They underscored the importance of proper allocation of resources, highlighting the role of the Ministry of Works in infrastructure development.
