Reps pledge to investigate companies exploiting tax waivers

Hon. Tajudeen Abbas, Speaker of the House of Representatives, on Thursday, severely condemned the misuse of tax breaks and exemptions.

The speaker also pointed out that people who abuse tax waivers are sabotaging the economy and must be stopped.

The Speaker made these comments at the inauguration of the Ad-hoc committee, which has been tasked with looking into claims of misuse of tax advantages by public institutions and businesses that benefit from them.

The Speaker stated that the House’s investigation aims to stop this economic sabotage and ensure openness, accountability, and fairness within the tax system through Julius Ihonvbare, the leader of the House.

He emphasised the importance of tax incentives as a key instrument for the government in promoting economic growth, luring investments, and boosting job creation.

The lawmaker stressed further the necessity of preventing abuse or exploitation of these government-provided incentives and making sure they are used responsibly.

Ihonvbare said, “The allegations brought before the House suggest that certain public institutions and companies may be exploiting these incentives for personal gain or to evade their tax obligations,” declared the Speaker, underscoring the committee’s establishment in response to these concerns.

He charged the committee, “In carrying out this investigation, the Committee is required to thoroughly investigate these allegations and provide recommendations for necessary sanctions and reforms.

“Endeavor to find out whether the beneficiaries of these tax incentives have lived up to the conditions attached to them and if they have fulfilled their obligations to the Nigerian people as required.

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“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.”

He added, “The purpose of this investigation is to end all forms of economic sabotage and ensure transparency, accountability, and fairness in our tax system.

“I, therefore, call on all relevant stakeholders, including government agencies, public institutions, and companies benefitting from tax 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.”

Hon. Abubakar Makki, chairman of the committee, emphasised the crucial part taxes play in financing developmental efforts.

He explained that insufficient tax revenue, leaks, or systemic violations reduce tax inflow, forcing the government to borrow, which can have a negative impact on the development of the country.

He said, “abuses of tax incentives by the supposed beneficiaries and the statutory institutions meant to regulate the tax regime could push the government into fiscal constraints.

“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.”

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