‘Bold decisions needed’ — Ndume asks FG to abolish tax waivers

‘Bold decisions needed’ — Ndume asks FG to abolish tax waivers

 Ali Ndume, chief whip of the senate, says Wale Edun,
minister of finance, should abolish tax waivers given to companies operating in
Nigeria.

 

Ndume spoke in Abuja on Wednesday during an interactive
session with Edun and the senate committee on appropriations.

 

In November, Taiwo Oyedele, chairman of the presidential tax
reform committee, said tax incentives gulp N6 trillion every year.

 

Ndume said bold decisions needed to be taken noting that
some companies are taking advantage of Nigeria “unnecessarily”.

 

 “I think we should be
bold enough just like the president is very bold. I still want to use this
opportunity to commend him for his speech to say there is no more fuel subsidy.
If he were to consult and talk to people the subsidy would have still been
there,” he said.

 

“So if you come out from here declare that no more waivers,
[and] it must be appropriated – you as the minister of finance can do that.

 

“We have to make bold decisions. Some people are taking
advantage of Nigerians unnecessarily and benefiting to the detriment of
Nigerians.

 

 “We talk about tax
credit. It is an expenditure and it should go through the national assembly and
there are no two ways about that.”

 

Solomon Olamilekan, chairman of the appropriations
committee, asked Edun what he thought of rebates for companies.

 

“What is your take that everybody pays what is expected of
them in the government coffers and later ask for rebate,” he said.

 

In response, the minister said the country could have a
system where companies pay their taxes and a rebate could be given to them
afterwards.

 

 “I think we are all
agreeing that we should try as much as possible to move to a system of exposure
so that afterwards a rebate system rather than upfront granting of waivers and
other incentives even including interest incentives,” Edun said.

 

“So if somebody is going to be given a concessional interest
rate, they pay the normal interest carry out the transaction and then they get
a rebate.”

 

Olamilekan added that since the country is in a
“transitionary” period, tax waivers should be cut by 50 percent.

Source: ‘Bold decisions needed’ — Ndume asks FG to abolish tax waivers

 - NigerianEye

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