The Senate, through its Finance Committee, has made a significant push for the Federal Inland Revenue Service (FIRS) to aim for an ambitious tax revenue goal of N30 trillion in 2024.
This call to action was accompanied by a critical review of the current tax waiver policies, which, according to the Senate, have led to a considerable loss of revenue, estimated at N17 trillion over the past five years.
The discussion took place against the backdrop of FIRS’s budget presentation for 2024, spotlighting the urgent need for fiscal policy reforms.
Highlighting a major fiscal concern, the Senate Committee on Finance expressed its dissatisfaction with the current tax waiver system, pointing out its susceptibility to abuse and the significant revenue leakages it has caused.
Senator Sani Musa, Chair of the Finance Committee, underscored the imperative for FIRS to overhaul its tax waiver policies, which have not only led to significant revenue losses but also detracted from the country’s fiscal health.
Musa said:
Zacch Adedeji, the Chairman of FIRS, expressed concerns over a proposed N2.7 trillion tax credit for road construction, advocating for a halt to this initiative until the full utilisation of the existing N2.5 trillion allocation. This stance underscores the need for a balanced approach to funding infrastructure while ensuring fiscal prudence.
He said:
He further highlighted a proactive step towards simplifying Nigeria’s complex tax system.
The FIRS boss said:
