The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, said the N2.59 trillion Tax Credit Scheme introduced by former President Muhammadu Buhari’s administration for road construction across the country was illegal and should be scrapped.
The N2.59 trillion Tax Credit Scheme was introduced through Executive Order 7 of 2021 by the Buhari-led administration.
The Senator Musa-led Committee had invited the FIRS and NNPCL to shed light on the implementation of the scheme because of the poor state of Federal Roads across the country.
Representatives of both the FIRS and NNPCL spoke when they appeared before the Senate Committee on Finance, chaired by Senator Sani Musa.
Criticizing the scheme, the FIRS chairman identified lapses in the Tax Credit scheme including those of project monitoring, budgetary allocations, and releases of funds.
He challenged the Federal Ministry of Works to be alive to its responsibilities while saying he would tutor officials of the ministry on principles of financial management during their next interface.
The National Petroleum Company Limited (NNPCL), cleared the air on a $ 3.3 billion loan facility secured by the Central Bank of Nigeria (CBN) for stabilization of Naira in the foreign exchange market.
Impressed by his submission, the Chairman of the Committee, Senator Musa, said relevant provisions of the 1999 constitution(as amended), are against the scheme because monies NNPC and FIRS are being made to spend on the roads through tax credit, supposed to be remitted into consolidated revenue funds.
The Road Infrastructure Tax Credit which can be claimed in any year of assessment is limited to fifty percent (50%) of the annual CIT liability. There is however no limit to the tax credit which can be claimed in respect of an Eligible Road in an ‘Economically Disadvantaged Area.
