Thieves in Human Form

On 19th of September, 2022, findings by The PUNCH stated that "The Federal Government has foregone N16.76tn in revenue to tax reliefs and concessions given to large companies between 2019 and 2021" and the question on the hearts of many Nigerians is, why? 

The tax system of Nigeria seems to be one of the most corrupt parastatal in the system and this is not known by many as a particular company which is a big name in Nigeria, amongst others has been exempted from paying taxes.

I know particularly that the major objective of taxation is to bridge the gap between the rich and the poor - redistribution of income - and one of the major canons of taxation is equality. Canon of equality states that the burden of taxation must be distributed equally (proportional tax) and equitably (Progressive tax) among the taxpayers.

I read a statement from the Federal Inland Revenue Service (FIRS) saying the service has granted tax waivers to a major holding company in Nigeria without a basis for doing such. The company Income Tax Act (CITA) gave conditions in which a company's tax can be waived. Unfortunately, this company is not one. It is very paramount for the FIRS to answer some vital questions.

1. On whose recommendations did FIRS waive tax?

2. Was the decision a directive from the Federal Government?

3. What has the company done to deserve waiving the tax?

I know they base their reasons on the fact that these firms create employment opportunities and build infrastructures. Let me tell you that the fountain of bad roads we seem to have in Nigeria is the plowing of the big trucks which are owned by this so called firm on our roads. 

If an entity sees itself as a corporate citizen, sustainability development and social responsibility should be priotised as much as profitability. The Obajana road axis, Kogi is in a very bad condition, likewise, the Ogun state axis, so where are the so called roads/infrastructures erected?

Read more: FG grants N16tn waiver to Dangote, Honeywell, others

In fact, that #16trillion would have financed the 2021 budget which would have made the country slowly geared in the direction of change.

The tax system in the country seem to have been politicized to enrich the rich and make the poor poorer, because these firms charge exorbitant prices for their goods which are all tax inclusive, why they should be exempted from tax is baffling.

The Education system and other sectors need urgent attention. These firms that emit harmful substances into the air that can reduce citizens life span are being freed instead of being charged heavily.

It is indeed a sad reality.

TheLegbeti✡️