The federal government has disclosed that it has commenced the review of tax waivers to investors.
This is just as it expressed readiness to pull back some of it waivers in order to reduce cost on the government.
The Minister of Finance, Zainab Ahmed made the disclosure Tuesday, at the 2020-2022 Medium Term Expenditure Framework and Fiscal Strategy Paper MTEF/FSP presentation in Abuja.
According to her, “There are too many incentives and tax waivers given to investors, but our partners in the trade will not necessarily agree with us. We also agree that there has to be a review of the pioneer status certificate issuance process because the waivers and the incentives are really costing us a lot”.
She added that the government will not just withdraw its decision on granting pioneer status given to some investors. “When a decision has been given and a private business makes an investment decision based on those incentives, you can’t pull out overnight. So, there has to be a period within which the commitments that have been made are allowed to exist before you impose new conditions.
“The government is currently reviewing the quantum of waivers. The idea is to see which one we can begin to pull back and throw away from the pool to reduce the cost on government, to encourage businesses and to make Nigeria competitive”, she remarked.
On the key assumption of the 2020-2022 MTEF/FSP, the Minister, said oil production volume is projected to be average 2.18mbpd for 2020; average crude oil price is targeted at $55 per barrel; exchange rate is projected N305/$1; GDP Growth rate 2.93%; Nominal GDP N142.96trillion and 10.81% inflation rate.