FG considers tax reliefs to fund road construction
The Federal Government said it might resort to a tax recovery funding arrangement for the execution of some major road projects in the country.
The Minister of Power, Works, and Housing, Mr. Babatunde Fashola, sad this on Tuesday in Abuja during a progress report meeting with contractors handling major road projects for the government
The new arrangement, he stated, became imperative as a result of revenue shortfalls, which had made funding of projects challenging for the government.
Fashola said that the government was exploring innovative ways of funding infrastructure projects, and as such, would allow companies operating within tax reliefs to undertake key road projects in the country.
He explained that companies with the capacity and willingness to reconstruct existing or build new roads in the country would be encouraged by the government to go ahead, and subsequently claim tax reliefs as recompense for their investments.
He said, “We welcome other like-minded individuals and companies who have that kind of money to intervene in certain roads, and claim tax relief back.
“What it really means technically is that government is spending in advance the taxes that it should collect to quickly respond to places where there is pain, because some of these companies, if they make profits, should pay taxes at the end; but the government is saying if they spend some of the taxes on public infrastructure, they will get some relief. We commend and welcome this initiative.
“That is the long term solution to the lockdown in Apapa. There will be some discomfort, but as we begin work on that area, people should expect some relief.”
The minister also stated that the N100bn Sukuk bond, which the government recently launched, would be channelled into funding 25 major road networks, which fall within the A1 to A4 arteries. Punch