The Senate, through its Committee on Finance, rejected the Federal Inland Revenue Service’s recommended stay of action stance on the N2.7 trillion Tax Credit Fund, which is necessary for particular road building by the Federal Ministry of Works.
The Chairman of FIRS, Zacch Adedeji, objected to a fresh N2.7tn requested by the Ministry of Works through the Nigerian National Petroleum Company Limited for funding of road projects under the Tax Credit Scheme during an engagement with the committee two weeks ago.
However, in a counterargument before the committee on Thursday, Minister of Works, Senator David Umahi, stated that the N2.7 trillion was not a new request, but rather a financial deficit that has existed since January of this year..
He stated to the committee that the Tax Credit Scheme has assisted the government in rehabilitating or reconstructing several vital highways around the country during the previous three years.
According to him:
“Tax Credit simply means front loading of taxes of the affected agencies involved and using it for infrastructure development.
“A very good example of it was the Apapa-Oshodi Road, reconstructed by Dangote Plc under the scheme which not only solved the problem of congestion on the road but provided a solid road that can last 50 years life span.
“It is the same road infrastructure solution the N2.59trn Tax Credits being offered through NNPCL offering but not well funded yet.
“Only N650bn has been released through two batches for funding execution of the affected roads under the scheme, making the N2.7tn funding gap very necessary. We need the funds for the completion of roads already started under the scheme.”
cc: Punch Ng
