The Speaker of the House of Representatives Dr Tajudeen Abbas, says the abuse of tax incentives and waivers is an act of economic sabotage which must not be allowed to continue.
The Speaker made the remark, while the inaugurating the Ad-hoc Committee to investigate allegations of abuse of tax incentives, tax breaks, and tax waivers by public institutions and companies benefitting from tax incentives.
Dr Abbas, who was represented by the House Leader, Professor Julius Ihonvbare, explained that the investigation by the was to put an end to such act of sabotage and ensure transparency, accountability and fairness in the tax system.
He said tax incentives are an essential tool used by governments to promote economic growth, attract investments, and stimulate job creation.
“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.
“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.
The mandate of the committee, according to him, is to examine the extent of the alleged abuse by public institutions and organisations, review relevant legislation, policies, and regulations governing the incentives and identify any loopholes or weaknesses that may have contributed to the alleged abuse.
“The purpose of this investigation is to end all forms of economic sabotage and ensure transparency, accountability, and fairness in our tax system.
He observed that where taxes are inadequate, where there are leakages or where infractions of the system leads to narrowing of tax inflow, the government resorts to borrowings which have attendant consequences for national development.
The Chairman of the Committee Mr Abubakar Yalleman, said the investigation is not a witch-hunting exercise, but a fact-finding mission that aims to correct the abuses in the management of tax incentives and ensure the right thing is done for the general good.