In a move to address the country’s infrastructure deficit in the education and health sectors, the House of Representatives has called on the federal government to provide tax incentives to companies through the Refurbishment Investment Tax Credit (RITC) scheme or a similar one.
The motion, sponsored by Naolim Nnaji and co-sponsored by Prof. Julius Ihonvbere, Chinda Kingsley, Igariwey Iduma, Sada Soli, Boma Goodhead, Laori Bitrus, Jonathan Gaza, and Kabiru Alhassan Rurum, was adopted during the plenary on Thursday.
Presenting the motion, Nnaji recalled that on January 25, 2019, former President Muhammadu Buhari signed the Presidential Executive Order for Road Infrastructure Development and Refurbishment Investment Tax Credit (RITC) scheme.
He explained that the RITC scheme is a form of tax incentive granted to Nigerian companies that engage in the construction and refurbishment of roads designated by the Federal Government as eligible road infrastructure projects.
According to the lawmakers, the main objective of the scheme is to encourage private sector participation in road infrastructure development projects in a cost-effective manner.
They noted that the burden of bridging the infrastructure gap was too heavy for the Federal Government to bear alone due to the global economic challenges, with public schools and hospitals being at the verge of collapse due to poor infrastructural funding and development.
READ ALSO:Zamfara Governor Refutes Claims of Excessive Spending on Foreign Trips
The lawmakers further noted that the provision of good schools and hospitals is essential for societal development and economic growth, leading to a reduction in unemployment, social vices, moral decadence, drug abuse, youth restiveness, mortality rate, the spread of diseases, and an unhealthy environment.
They added that the current economic instability is impeding on the government’s ability to adequately fund public schools and hospitals, a situation that could exacerbate the aforementioned issues.
In light of these challenges, the lawmakers urged the Federal Government to replicate similar tax waivers and incentives granted to companies engaged in RITC for road infrastructure to more private companies for partnership in bridging the infrastructural gap in public schools and hospitals.
They added that such private sector involvement in infrastructure development would boost corporate image, especially in economically disadvantaged areas, and could reduce corporate income tax payable in a year of assessment where there is unutilized tax credit.
The House adopted the motion and urged the Federal Government to consider granting tax incentives to more companies for engagement in the infrastructural development of public schools and hospitals under a similar RITC scheme.
It also urged the Ministers of Finance, Education, and Health, as well as the Federal Inland Revenue Service (FIRS), to activate the necessary bureaucratic processes for the successful implementation of this tax incentives scheme.
The House mandated its committees on Finance, Education, Healthcare Services, Health Institutions, and Legislative Compliance to ensure compliance and report back to the House within three weeks for further legislative actions.
By providing tax incentives to companies that invest in education and health infrastructure, the federal government can help to address the country’s infrastructure deficit and improve the quality of life for its citizens.