HOUSE OF REPS MULLS USE OF TAX iNCENTIVES TO ATTRACT PRIVATE-SECTOR FUNDINGS INTO PUBLIC SCHOOLS AND PUBLIC HOSPITALS
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The House of Representatives on Thursday mulled the idea of further deployment of tax reliefs as a veritable alternative to the funding of public schools and hospitals infrastructures in the country.
Members were unanimous in adopting the motion titled, “Urgent Need for the Federal Government To Grant Tax Incentives for Nigerian Companies to Invest Into Public Schools’ and Hospital’s’ Infrastructural Developments sponsored by Honourable Nnolim Nnaji and eight other members.
In presenting the motion on behalf of his co-sponsors, Honorable Nnaji noted that the Federal Government in January 25, 2019 under Executive Order tagged Road Infrastructure Refurbishment Investment Tax Credit Scheme, (RITCS) signed by the then President Muhammadu Buhari granted some companies tax waivers for undertaking to reconstruct designated Federal Roads.
He noted that the scheme was a win-wine situation that enabled private sector participation in funding road infrastructure projects and also offering the participating companies some tax holidays and incentives.
He also observed that in 2021 , the Federal Inland Revenue Service, (FRS) Coordinating Director, Tax Operations Group, (TOG) Femi Oluwaniyi urged other corporate bodies across the country to join NNLG, MTN and others to take advantage of government’s tax credit facility and certificate for providing Road infrastructures.
The House in adopting the morion urged the Federal Government to consider granting tax incentives to more companies for engagement in infrastructural development of public schools and hospitals under similar RITC scheme which could lighten the government’s fiscal responsibility burden.
The parliament further urged the Ministries of Finance, Education and Health as well as FIRS to activate the bureaucratic process for the successful implementation of the programme.
It equally mandated the Committees on Finance, Education, Health Services, Health Instructions and Legislative Compliance to ensure compliance and report back within three weeks for further legislative actions.
Rep Nnaji stressed that replicating similar tax incentives granted to those companies engaged in RITC Road infrastructure to more private companies in bridging the infrastructural gap in public schools and hospitals had become inevitable because of the paucity of funds being experienced at the money by the Federal Government.
