Speaker of the House of Representatives, Tajudeen Abbas, has said abuse of tax incentives and waivers is an act of economic sabotage, which must be discontinued.
The Speaker disclosed this, yesterday, while inaugurating an ad hoc committee to investigate alleged abuse of tax incentives, tax breaks, and tax waivers by public institutions and companies.
Represented by House Leader, Julius Ihonvbare, the Speaker said the investigation seeks to end such acts of economic sabotage and ensure transparency, accountability and fairness in the country’s tax system.
He described tax incentives as an essential tool of governments to promote economic growth, attract investments, and stimulate job creation, stressing it is important to ensure incentives by the government are not misused or abused.
“The allegations that have been brought to the attention of the House suggest that some public institutions and companies may be taking advantage of these incentives for personal gain or to evade tax obligations; hence, the establishment of this committee.
“In carrying out this investigation, the committee is required to thoroughly investigate these allegations and provide recommendations for necessary sanctions and reforms; and endeavour to find out whether beneficiaries of these tax incentives have lived up to the attached conditions or fulfilled their obligations to the Nigerian people as required,” he said.
He said the mandate will examine the extent of the abuse by public institutions and organisations; review relevant legislations, policies, and regulations governing incentives; and identify any loopholes or weaknesses that may have contributed to the abuse.”
He, therefore, called on all relevant stakeholders, including government agencies, public institutions, and companies benefitting from tax incentives, to cooperate fully with the investigation; for the House to have full understanding of the tax system, with a view of taking appropriate legislative actions.”