2023 Budget: Senate Says No to N6trn Tax, Import Duties Waivers
SENATE CHAMBER
*Directs Finance Minister, Customs to review waivers by 50%
By Our Correspondent
The Senate on Tuesday said no to the planned N6 trillion tax and import duties waivers as contained in the proposed 2023 budget under the 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP).
The proposed 2023 budget is put at N19.76 trillion with a deficit of N12.4 trillion.
The Senate voiced their rejection when the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed and heads of revenue generating agencies met in Abuja.
The Senate particularly directed the Nigeria Customs Service (NCS) to review downward its proposed waivers by 50 percent.
The Upper Chamber also frowned at tax abuse in the county and asked the Federal Inland Revenue Service (FIRS) to address the issue.
At the meeting, Mrs Ahmed had informed the lawmakers that out of the N19.76 trillion proposed budget there would be a deficit of N12.43 trillion since N6 trillion is projected as tax and import duty waivers.
She also said the fuel subsidy would cost the country N6 trillion.
However, in his reaction, the Chairman of the Senate panel, Senator Solomon Adeola told the Finance Minister to review critically the N12.43 trillion budget deficit and the N6trillion tax and import duty waivers.
Adeola charged the Minister to take a look at the beneficiaries of the waivers and reduce the figure to N3trillion.
He told the Minister, “The proposed N12.43 trillion deficit for the 2023 budget and N6 trillion waivers are very disturbing and must be critically reviewed.
“Many of the beneficiaries of the waivers are not ploughing accrued gains made into expected projects as far as infrastructural developments are concerned.
“The same goes for tax credit window offered by the FIRS to some companies.
“Billions and trillions of naira can be generated by government as revenue if such windows are closed against beneficiaries abusing them and invariably provide required money for budget funding with less deficit and borrowings.
“The NCS should help in this direction by critically reviewing waivers being granted on import duties for some importers just as the FIRS should also review the tax credit window offered some companies without corresponding corporate social services to Nigerians in terms of expected project executions like road construction.
“We cannot accommodate this N6 trillion tax waivers. It is in this wise that the committee frowns at the projected N12.41trillion budget deficit contained in the 2023-2025 MTEF/FSP and the alarming projection of ‘no provision for treasury-funded MDAs’ capital projects in 2023.
“This scenario is unacceptable and we must find ways to drastically reduce the deficit humongous figure.
“It is apparent that the borrowing trends cannot be allowed to continue unchecked and conscious efforts must be made to reduce budget deficits.
“Achieving these goals requires us to look inwards towards increased revenue generation, blocking of leakages and restraints on what are generally frivolous expenditures by MDAs, particularly the Government Owned Enterprises (GEOs).
“Our preliminary findings and directives to some of the agencies had led to payment of millions of naira into CRF in accordance with the Fiscal Responsibility Act 2007 and the 1999 Constitution.
“It is needless to say that these millions not paid to CRF contribute to the yearly huge budget deficits of the federal government.
“The investigation was also able to get some agencies to accept opting out of the federal budget altogether based on their internal revenue generating ability. Some of these findings are relevant to the proceedings of this 5-day interactive session.
“From the challenges thrown up against our economy in terms of the Russia-Ukraine war, the impact of crude oil theft, insecurity, and continuing infrastructure deficits, it is time for all to agree that it cannot be business as usual for government revenue and expenditures.
“We need to block all revenue leakages and misuse in MDAs as well as control expenditure to free funds for needed infrastructure development and provision of social services.”
By Our Correspondent
The Senate on Tuesday said no to the planned N6 trillion tax and import duties waivers as contained in the proposed 2023 budget under the 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP).
The proposed 2023 budget is put at N19.76 trillion with a deficit of N12.4 trillion.
The Senate voiced their rejection when the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed and heads of revenue generating agencies met in Abuja.
The Senate particularly directed the Nigeria Customs Service (NCS) to review downward its proposed waivers by 50 percent.
The Upper Chamber also frowned at tax abuse in the county and asked the Federal Inland Revenue Service (FIRS) to address the issue.
At the meeting, Mrs Ahmed had informed the lawmakers that out of the N19.76 trillion proposed budget there would be a deficit of N12.43 trillion since N6 trillion is projected as tax and import duty waivers.
She also said the fuel subsidy would cost the country N6 trillion.
However, in his reaction, the Chairman of the Senate panel, Senator Solomon Adeola told the Finance Minister to review critically the N12.43 trillion budget deficit and the N6trillion tax and import duty waivers.
Adeola charged the Minister to take a look at the beneficiaries of the waivers and reduce the figure to N3trillion.
He told the Minister, “The proposed N12.43 trillion deficit for the 2023 budget and N6 trillion waivers are very disturbing and must be critically reviewed.
“Many of the beneficiaries of the waivers are not ploughing accrued gains made into expected projects as far as infrastructural developments are concerned.
“The same goes for tax credit window offered by the FIRS to some companies.
“Billions and trillions of naira can be generated by government as revenue if such windows are closed against beneficiaries abusing them and invariably provide required money for budget funding with less deficit and borrowings.
“The NCS should help in this direction by critically reviewing waivers being granted on import duties for some importers just as the FIRS should also review the tax credit window offered some companies without corresponding corporate social services to Nigerians in terms of expected project executions like road construction.
“We cannot accommodate this N6 trillion tax waivers. It is in this wise that the committee frowns at the projected N12.41trillion budget deficit contained in the 2023-2025 MTEF/FSP and the alarming projection of ‘no provision for treasury-funded MDAs’ capital projects in 2023.
“This scenario is unacceptable and we must find ways to drastically reduce the deficit humongous figure.
“It is apparent that the borrowing trends cannot be allowed to continue unchecked and conscious efforts must be made to reduce budget deficits.
“Achieving these goals requires us to look inwards towards increased revenue generation, blocking of leakages and restraints on what are generally frivolous expenditures by MDAs, particularly the Government Owned Enterprises (GEOs).
“Our preliminary findings and directives to some of the agencies had led to payment of millions of naira into CRF in accordance with the Fiscal Responsibility Act 2007 and the 1999 Constitution.
“It is needless to say that these millions not paid to CRF contribute to the yearly huge budget deficits of the federal government.
“The investigation was also able to get some agencies to accept opting out of the federal budget altogether based on their internal revenue generating ability. Some of these findings are relevant to the proceedings of this 5-day interactive session.
“From the challenges thrown up against our economy in terms of the Russia-Ukraine war, the impact of crude oil theft, insecurity, and continuing infrastructure deficits, it is time for all to agree that it cannot be business as usual for government revenue and expenditures.
“We need to block all revenue leakages and misuse in MDAs as well as control expenditure to free funds for needed infrastructure development and provision of social services.”
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