The House of Representatives has on Tuesday, May 24,
2016 passed a resolution mandating the Committees on Public Accounts and
Finance to investigate the incentives that are currently being granted
to multi- national corporations with a view to reducing and abolishing
unproductive incentives and ensuring that those remaining are targeted
at achieving specific social or economic objectives.
The
resolution was passed following a motion moved by Hon. Kehinde O.
Odeneye during the legislative plenary session, citing the need to
conduct the investigation on the heels of the fact that tax incentives
could genuinely attract more and better investments, such as ensuring
good quality infrastructure, reducing the administrative costs of
setting up and running businesses.
He added that it will also
boost predictable micro-economic policies; he was concerned that there
is little evidence that tax incentives have increased capital to support
economic development and create employment in the nation, a situation
he attributed to the assertion that Nigeria is foregoing about $2.9
billion a year in form of Tax Incentives.
He
posited that the Federal Government has over the years actively wooed
foreign investors through numerous incentive policies and regulatory
framework to promote Foreign Direct Investment (FDI), informing that the
Nigeria Investment Promotion Council reported in 2015 that the nation
receives an average of $6 billion in FDI annually. He however noted that
wanton grant of tax incentives and waivers without recourse to the
National Assembly has contributed to the economic challenges of the
nation. The Investigative Committees are to report back to the House
within one month.
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