The Speaker who bemoaned the abuse of tax incentives by public institutions and companies benefiting from it, said the probe seeks to end all forms of economic sabotage in the country.
The House of Representatives has inaugurated an ad-hoc committee to commence investigating allegations of abuse of tax incentives, tax breaks, and tax waivers by public institutions and companies benefiting from tax incentives in Nigeria, on Thursday in Abuja.
Inaugurating the committee on Thursday, Speaker Tajudeen Abbas noted that tax incentives are essential tools used by governments to stimulate economic growth, attract investments, and stimulate job creation.
The Speaker, however, lamented that such incentives have over the years, been abused by companies benefiting from the gesture of government thus necessitating the investigation.
He, therefore, called on the committee to thoroughly investigate the allegations and make appropriate recommendations.
“In carrying out this investigation, the committee is required to thoroughly investigate these allegations and provide recommendations for necessary sanctions and reforms.
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“Endeavor to find out whether the beneficiaries of these gestures 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.
“You should summon witnesses, request documents, and conduct hearings as necessary.”
The Speaker further said the purpose of the investigation is to end all forms of economic sabotage and ensure transparency, accountability, and fairness in the country’s tax system.
“I, therefore, call on all relevant stakeholders, including government agencies, public institutions, and companies benefitting from such incentives, to cooperate fully with the committee’s investigation for the House to have a full understanding of the tax system with a view of taking appropriate legislative actions”.
He reiterated the confidence of the House in the Chairman of the committee, Rep. Makki Abubakar Yalleman, and his members to conduct a thorough investigation within the allotted time frame.
On his part, Rep. Yelleman, stated that the probe is not a witch-hunting exercise, but an effort to correct abuses in the management of tax incentives.
He noted that as the country experiences dwindling oil revenues, there is a need to ensure proper administration of tax breaks.
“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,” the chairman said.
