Private Companies Can Now Build Federal Roads for Tax credits
Quote from Ndubuisi Ekekwe on January 25, 2019, 2:42 PMGoing forward, private entities can now build federal roads and get tax credits for doing so. Simply, it means that government has lost faith in its capacity to collect taxes effectively since it can collect the taxes and use same money to build the roads. Similarly, private companies have lost faith in paying taxes since after paying the taxes, government cannot provide decent roads. Now, they are innovating by having this balance: just hope that a road of $1 million does not cover a tax bill of $10 million.
President Muhammadu Buhari has signed and executive order allowing private companies build federal roads in the country.
The Executive Order 007 2019, signed by the president, is on Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
The president signed the order on Friday inside the council chamber of State House, Abuja.
The new order will allow private companies such as the Dangote Group, Unilever, and Lafarge Africa to construct major roads across the country and be paid in the form of tax credit.
Going forward, private entities can now build federal roads and get tax credits for doing so. Simply, it means that government has lost faith in its capacity to collect taxes effectively since it can collect the taxes and use same money to build the roads. Similarly, private companies have lost faith in paying taxes since after paying the taxes, government cannot provide decent roads. Now, they are innovating by having this balance: just hope that a road of $1 million does not cover a tax bill of $10 million.
President Muhammadu Buhari has signed and executive order allowing private companies build federal roads in the country.
The Executive Order 007 2019, signed by the president, is on Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
The president signed the order on Friday inside the council chamber of State House, Abuja.
The new order will allow private companies such as the Dangote Group, Unilever, and Lafarge Africa to construct major roads across the country and be paid in the form of tax credit.