The Senate on Tuesday passed for second reading a bill to amend the Federal Inland Revenue Service (FIRS) Act to regulate the processes of granting corporate tax holidays, import duty waivers and investment incentives to investors and businesses in Nigeria.
The bill, sponsored by Senator Yahaya Abubakar Abdullahi (PDP, Kebbi North), seeks to whittle down the powers of the federal government to unilaterally grant tax holidays and incentives to businesses.
It seeks to create a new Section (9) in the FIRS Act to mandate the tax agency to secure legislative approval of the National Assembly in granting new or renewal of corporate tax incentives and waivers.
The proposed amendment states that all requests and applications for parliamentary approval shall be referred to the Senate and the House of Representatives for necessary scrutiny.
Senator Abdullahi, in his lead debate, said the bill became imperative due to leakages and loopholes in tax collection and remittances to the government amid revenue shortfalls and a high public debt profile.
He expressed worry that in the last five years, the country was unable to achieve its revenue targets.
