Senate Rejects N17 Trillion Loss on Tax Waivers: Calls for FIRS Action

In a bold move to address the significant revenue loss faced by the country, the Senate Committee on Finance has called for the suspension of tax waivers, urging the Federal Inland Revenue Service (FIRS) to adopt a rebating system instead.

The decision comes in response to the staggering N17 trillion loss incurred by Nigeria due to tax incentives over the last five years.

The Senate’s stance on the matter was made public on Monday, as the committee expressed its concerns about the potential abuse of tax waivers and the need for a more effective and transparent system.

The committee stressed that a rebating system would help prevent the misuse of tax incentives while still supporting businesses and promoting economic growth.

In light of the N17 trillion revenue loss, the Senate’s call for action is timely and necessary.

The current tax waiver system has been criticized for its lack of transparency and potential for abuse, leading to significant losses for the government.

By implementing a rebating system, the Senate hopes to reduce the potential for misuse while ensuring that businesses continue to receive the support they need.

The Federal Inland Revenue Service (FIRS) has been tasked with implementing the new rebating system, which would allow businesses to claim tax incentives after fulfilling specific criteria.

This would ensure that only eligible companies benefit from tax incentives and prevent the misuse of funds.

The Senate’s decision to address the issue of tax waivers is a step in the right direction, as it seeks to protect the country’s revenue and promote a more transparent and fair system.

By replacing tax waivers with a rebating system, the government can ensure that businesses receive the support they need while minimizing the potential for abuse and revenue loss.

As Nigeria moves forward with this new approach to tax incentives, it is crucial for the government to continue monitoring the situation and making adjustments as needed.

This will help ensure that the country’s tax system remains fair and efficient, promoting economic growth and supporting businesses in a responsible and sustainable manner.