Senate Rejects FIRS Stand on Tax Credit Controversy, Approves Ministry of Works' Funding Request
The Senate Committee on Finance has taken a decisive stance in favor of the Ministry of Works, rejecting the Federal Inland Revenue Service's (FIRS) position on the N2.7 trillion Tax Credit Fund earmarked for specific road constructions.
During a recent interface with the Committee, FIRS Chairman, Zacch Adedeji, opposed the Ministry of Works' request for fresh funding through the Nigerian National Petroleum Company Limited (NNPCL) under the Tax Credit Scheme.
However, Minister of Works, Senator David Umahi, presented a compelling counterargument before the Committee, clarifying that the N2.7 trillion was not a new request but a necessary funding gap as of January of the current year.
Umahi highlighted the success of the Tax Credit Scheme in facilitating critical road infrastructure development across the nation over the past three years. He emphasized that Tax Credit involves front-loading taxes from involved agencies for infrastructure development, citing the exemplary reconstruction of the Apapa-Oshodi Road by Dangote Plc as a notable achievement under the scheme.
Chairman of the Committee, Senator Sani Musa (APC Niger East), expressed support for the Tax Credit Policy as a necessary initiative to address pressing needs. Based on Umahi's submissions, the Committee endorsed the release of the N2.7 trillion for ongoing projects under the scheme. The chairman however added that fresh implementation of the policy outside the N2.7trillion , should be halted for now .
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