Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, expressed concern over Nigeria’s staggering annual losses amounting to N6 trillion due to tax waivers.
He highlighted the alarming fact that this sum mirrors the country’s annual revenue generation, emphasizing the lack of measured assessment regarding the impact of these waivers on the nation’s economy.
During an appearance on Channels TV Sunrise Daily program, Oyedele affirmed the concerning figure of N6 trillion as the annual cost incurred by the country in tax waivers, a figure recently cited by the Senate.
Oyedele stressed the failure of successive governments to evaluate the economic implications of these tax waivers, portraying a scenario where substantial sums are relinquished without a thorough understanding of their impact. He underscored the severity of this situation, especially considering the significant disparity between the country’s revenue base and the magnitude of these waivers.
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Highlighting the Federal Inland Revenue Service’s (FIRS) revenue generation in 2021, barely reaching N6 trillion, Oyedele emphasized that giving away an equivalent sum in tax waivers and incentives poses a significant challenge to the country’s fiscal stability.
However, Oyedele also mentioned that the committee recommended the temporary suspension of Value-Added Tax (VAT) on diesel and essential services, citing the current economic realities in the country. He emphasized the importance of such measures, considering their potential impact on both the economy and the social well-being of the populace.
Amidst these concerns about substantial tax waivers and their repercussions, Oyedele advocated for prudent fiscal measures that consider the economic and social impacts, aiming to balance economic exigencies with the welfare of the people.
