The House of Representatives has resolved to set up and Ad hoc Committee to investigate alleged abuse of tax incentives, breaks and waivers by public officials and benefiting companies.
This was sequel to a unanimous adoption of a motion by Rep. Oluwole Oke (PDP-Osun) at plenary on Thursday.
Moving the motion earlier, Oke said that it is within the ambits of the powers of the Federal Government to exercise executive and legislative jurisdiction over items in the Exclusive Legislative list as contained in the second schedule of the Constitution.
He said that items like taxation of incomes, profits and capital gains, export and imports are exclusively within the control of the Federal Government.
According to him, in line with the above, the Federal Government of Nigeria exercise monetary and fiscal controls over the economy to stabilise both micro and macro-economic conditions and fundamentals.
The lawmaker said that some of the tools available to monetary and fiscal policy authorities to tinker with the economy and stimulate economic activities in some sectors of the economy are tax waivers, tax breaks, tax exemptions and tax incentives.
Available data also shows that while the Federal Government has good intentions, these practices have and continue to create a major black hold in the purse of the Government of the Federation.
“These losses are occasioned and driven primarily by abuses by companies that have been granted tax-based waivers and incentives.
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