In a session focused on the 2024 budget presentation of the Federal Inland Revenue Service (FIRS), the Senate Committee on Finance, led by Senator Sani Musa, expressed dissatisfaction with the reported N17 trillion loss incurred by the country due to tax waivers over the last five years. The committee raised concerns about the allegedly abused tax waivers and urged the FIRS to suspend their implementation, recommending the adoption of a rebating system as an alternative.
The Chairman of FIRS, Zacch Adedeji, presented a targeted total tax collection of N19.4 trillion for 2024, emphasizing the need to halt the proposed N2.7 trillion tax credit for road construction by the Central Bank of Nigeria (CBN).
Senator Sani Musa, addressing the FIRS chairman, emphasized the committee’s concern over the abuse of tax waivers, leading to significant losses for the country. He urged the FIRS to reevaluate the approach, suggesting the suspension of tax waivers and the possible substitution with a rebating system.
Musa acknowledged the positive trajectory in tax collection under FIRS’s leadership, expressing confidence that with the right measures, the agency could achieve even higher revenue, potentially reaching N30 trillion.
The FIRS chairman, Zacch Adedeji, earlier highlighted ongoing efforts to streamline the taxation system, aiming to reduce the current 62 different taxes to just eight. He mentioned President Bola Tinubu’s commitment to tax reforms and fiscal policy, emphasizing the need to alleviate Nigerians from the burden of multiple taxation.
However, the FIRS boss also addressed the controversy surrounding the tax credit scheme for road construction by CBN. Adedeji insisted that the initially committed N2.5 trillion must be fully implemented before considering any fresh requests, stating that the N2.7 trillion new request should not be entertained until the existing commitment is exhausted.
As the Senate urges FIRS to reevaluate its tax waiver policies and explore alternatives, the focus remains on fostering efficient revenue generation and addressing concerns related to multiple taxation.
