ActionAid Nigeria (AAN), has said the federal government has no single mechanism in place to determine the cost-benefit of tax incentives since inception.
The Country Director, Ene Obi, stated this yesterday in Abuja during the “Review and Compilation of Existing Studies and Reports on launch of the tax incentives report.”
Obi while calling for justification for granting tax incentives in order to promote transparency, said recent survey conducted by the organisation revealed that 84.9 percent granting of tax incentives in Nigeria is usually void of due process and often time against the core policy.
She said, “the country tax incentives management process creates a huge revenue loss to the government; therefore, the government of Nigeria is advised to institutionalize the process by which the revenue loss attributable to tax incentives is regularly estimated and reported ideally as part of an annual Tax Expenditure Report.
Represented by ActionAid Director of Organisational effectiveness, Funmilayo Oyefusi, urged the government to provide an institutionalized mechanism that quantifies the effectiveness of tax incentive measures and communicate the costs and benefits of the current system to policy makers or the public.
“The amount of revenue loss attributable to tax incentives are not regularly calculated and publicly reported in the yearly budget to reflect the revenue expenditure to the government.l,” she said.