Oyedele expresses concern over annual loss of 6 trillion naira due to tax exemptions

Chairman of the Presidential Commission on Taxation, Fiscal Policy and Reform, Taiwo Oyedele, on Friday said he was concerned that Nigeria would lose N6 trillion annually from tax exemptions.

Mr Oyedele raised this concern in an interview with Channels Television’s Sunrise Daily when he spoke about the impact of losing the N6 trillion in revenue, the same as Nigeria generates on an annual basis.

He also addressed the issue of tax exemptions, saying governments at all levels have failed to measure the impact on the country’s economy.

“Yes, as a matter of fact, we give away about six trillion naira annually,” the financial expert said, confirming the figure that the Senate recently cited as tax exempt.

“As for the economic viability of huge tax breaks, the country has so far been unable to measure its impact on the economy.

“That’s the really painful part, because it looks like we’re wasting money that we didn’t have in the first place. And these numbers are huge compared to our revenue base.

“If we were a country producing 60 trillion naira, 70 trillion naira and giving away 6 trillion naira, we would probably say, ‘We can live on that.’

“However, in 2021, the revenue generated by FIRS was barely 6 trillion naira. And it returns that in the form of tax exemptions and incentives.”

Source: guardian.ng