Nigerian Senate to reduce 6trn proposed import waiver  by 50%

The Nigerian Senate will reduce the import duties waiver proposed for the N19.76trillion 2023 budget with an attendant deficit of N12.4 trillion.

The Chairman of the Senate Committee on Finance, Sen. Solomon Adeola disclosed this in Abuja on Tuesday, at an interactive session.

He said the senate would reduce the N6 trillion proposed as an import waiver for companies in the 2023- 2025 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper(FSP) with revenue-generating agencies.

Adeola said the reduction became necessary, given the projected deficit of N12.4 trillion in the 2023 budget estimates and the current dwindling revenue profile of the nation.

He said a conscious effort must be made to reduce the growing budget deficits, adding that borrowing trends can not be allowed to continue unchecked.

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He said there was an urgent need to look inward towards increased revenue generation and blocking of leakages.

“About six trillion was provided as a waiver for companies in the 2023 proposal, but we should reduce it by 50 per cent.

“I don’t think we can accommodate that, we need to reduce the six trillion waiver by 50 per cent,” Adeola said.

Adeola also urged the Ministry of Finance to place 63 Government Owned Enterprises (GOEs) on the cost of collection to fund their expenditures with immediate effect.

This, he said, would generate more revenue to fund the deficit envisaged in the 2023 budget.

According to him, placing the agencies on the cost of collection would spur the GOEs to collect more, because the more they generate, the more they receive.

Adeola also called for a review of pioneer legislation status on the tax of some companies in the last five years.

(NAN)

Nigerian Senate to reduce 6trn proposed import waiver  by 50%