By NDUBUISI FRANCIS
The Federal Inland Revenue Service (FIRS) has issued Dangote Cement Plc tax credit certificates valued at ₦22.321 billion.
The tax credit certificates are for the construction of Apapa-Oworonshoki-Ojota road in Lagos and the Lokoja-Obajana-Kabba road connecting Kogi and Kwara states.
While Julius Berger is handling the construction of these two federal roads, Dangote Cement Plc is providing the funding.
The credit certificates issued to Dangote is a waiver to cover for the tax that Dangote Cement would have paid.
The FIRS’ Executive Chairman, Muhammad Nami gave the clarification in Abuja on Wednesday while presenting the two tax credit certificates to Dangote Cement.
Nami was represented by the Coordinating Director, Tax Operations Group, FIRS, Mr. Femi Oluwaniyi.
The tax credit certificates for the Apapa– Oworoshoki–Ojota expressway is valued at ₦21.6 billion while that of Lokoja-Obajana-Kabba expressway is valued at ₦721 million.
This is the second tax credit certificate of the Federal Inland Revenue Service (FIRS) to be issued to Dangote for the Lokoja-Obajana-Kabba road construction.
A ₦9.5billion tax credit certificate had earlier in 2019 been awarded to Dangote Cement Plc for the Lokoja-Obajana-Kabba road.
Nami said: “Government came to that reasoning that if we could encourage local investors to do the needful and of course under an agreement with some due monitoring and approvals then some of the monies they would have accrued back to government as taxes they would have paid.
“it will be in the interest of the government that other investors, business entrepreneurs, companies take advantage of this key initiative such that Nigeria can develop faster than government would have done alone.
“We are hoping that this arrangement will be taken to another level, we are also believing that this will spur other business players out there to come and take advantage of it.”
The issuance of tax credit certificates followed the signing of Executive Order 07 of 2019 by President Muhammadu Buhari which is on road infrastructure tax credit. The Order encourages companies to develop infrastructure around their operational area as long as it will enhance their delivery and their businesses.
Receiving the tax credit certificates on behalf of Dangote Cement Plc, the Group Executive Director, Govenment and Stakeholders Relations, Ahmed Mansur
said it was true that the responsibility of providing public services and public facilities like roads and electricity, among others is that of the state, the prevsiling reality in modern state is that it is not possible to encompass every service that the public requires even if the state has the funds.
He added, “To do it at the same time within the time that the public requires is often not possible and I think it is this kind of thing that has generated the need for the state to engage private actors to participate in the process”. (THISDAY)
