The Senate says it will reduce the import duties waivers proposed for the N19.76trillion 2023 budget with attendant deficit of N12.4trillion.
The Chairman, Senate Committee on Finance, Sen. Solomon Adeola made this known in Abuja on Tuesday, at an interactive session says it will reduce the N6 trillion proposed as 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.
Adeola said conscious effort must be made to reduce the growing budget deficits, adding that borrowing trends can not be allowed to continue unchecked.
He said there was an urgent need to look inward towards increased revenue generation and blocking of leakages.
“About six trillion was provided as 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 cost of collection to fund their expenditures with immediate effect.
This, he said, would generate more revenue to fund the deficit envisaged in 2023 budget.
According to him, placing the agencies on 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 tax of some companies in the last five years.
The Minster of Finance, Budget and National Planning, Zainab Ahmed in her presentation on overview of 2023-2025 MTEF/ FSP disclosed that the Federal Government revenue for 2023 was projected at N6.34 trillion.
According to her, N373.17 billion would be generated from oil sources, while the balance of N5.97trillion would be earned from non-oil sources.
She also said the budget deficit for 2023 was projected to be N12.41 trillion, while the federal government’s 2023 aggregate expenditures was projected to be N19.76 trillion.
Responding to questions from senators, she said that it was the assumption of government that fuel subsidy would be exited by June 2023.
She, however, expressed hope that the parliament would see a better way of ensuring exist of fuel subsidy.
She said the deficit envisaged in the budget was a concerned and debt serving was consuming a chunk of the nation’s revenue.
Ahmed said there was need to improve the revenue and reduce leakages inherent in the system.
“One of the ways to increase our revenue, is to strengthen our monetary generating enterprises and to provide real sanctions to defaulters based on the fiscal responsibility act.
On issuing tax credit to some companies and waivers .
She said:” Tax credit are issued only when companies construct projects and the projects are certified and certificate issued by the Federal Ministry of Works.
She also said that some of the waivers are backed by laws enacted by the legislature , adding that a review of the waivers would require an amendment to such laws.