The Senate’s Committee on Finance has expressed concern over the N17 trillion loss incurred by Nigeria in tax waivers over the past 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, which they believe are being abused, and advocated for a rebating system as a substitute.
Chairman of the committee, Senator Sani Musa (APC, Niger East), highlighted the need for FIRS to take decisive action, stating, “Available records show that within the last five years, about N17 trillion has been lost by the country to tax waivers.
It should be suspended and possibly substituted with a rebating system.”
FIRS Chairman, Zacch Adedeji, outlined the agency’s efforts to streamline taxation, including plans to reduce the 62 different taxes currently in place to eight, in collaboration with a committee set up by President Bola Tinubu.
Adedeji emphasized the need to fully implement the N2.5 trillion Tax Credit Scheme for road construction by the Central Bank of Nigeria (CBN) before considering any fresh requests, including the proposed N2.7 trillion tax credit for road construction.
The Senate commended FIRS for its performance and projected tax collection of N19 trillion for 2024 but urged the agency to strive for even greater revenue generation, suggesting a potential target of N30 trillion with the right measures in place.
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