Abbas: Abuse of Tax Incentives, Waivers Are Economic Sabotage

Adedayo Akinwale in Abuja

The Speaker of the House of Representatives, Hon. Tajudeen Abbas has described the abuse of tax incentives and waivers as acts of economic sabotage.
The Speaker who decried the abuse of tax incentives, tax breaks, and tax waivers by public institutions and companies noted that it must not be allowed to continue.
Abbas stated this yesterday, while inaugurating the Ad-hoc Committee mandated to investigate the abuse of tax incentives.
The Speaker, who was represented by the House Leader, Prof. Julius Ihonvbare, explained that tax incentives were essential tool used by governments to promote economic growth, attract investments, and stimulate job creation.

Abbas, stressed that it was crucial to ensure that these incentives offered by the government are utilised appropriately and not being misused or abused.
To this end, he said the Green Chamber’s resolve to investigate the act was to put an end to such acts of economic sabotage, ensure transparency, accountability and fairness in the country’s tax system.
The Speaker stated: “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 their tax obligations. Hence the establishment of this committee.”
He noted that in carrying out this investigation, the Committee was required to thoroughly investigate these allegations and provide recommendations for necessary sanctions and reforms.

Abbas also urged the committee 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.
He said the mandate of the committee was 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.
The Speaker noted: “The purpose of this investigation is to end all forms of economic sabotage and ensure transparency, accountability, and fairness in our tax system.”

Earlier, the Chairman of the Ad hoc Committee, Hon. Abubakari Yalleman, said taxes enable the government to raise the necessary funds needed for development.
The lawmaker said while tax incentives are granted to encourage businesses to stand well and be strong enough to contribute to the economy, it abuses create distortions in fiscal and monetary policy management.
He was of the opinion that abuse of tax incentives by the supposed beneficiaries and the statutory institutions meant to regulate the tax regime could push the government into fiscal constraints.

Yalleman noted: “Where taxes are inadequate, where there are leakages or where infractions of the system lead to narrowing of tax inflow, the government resorts to borrowings which have attendant consequences for national development.
“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.”