The House of Representatives has vowed to investigate the activities of Indorama Petrochemical and its subsidiaries over the tax waiver and other incentives granted to the company and its subsidiaries.
The companies are Indorama Petrochemical, Indorama Fertiliser and Petrochemical Ltd and OIS Indorama, Eleme, Port-Harcourt.
The Public Accounts Committee (PAC), acting on audit queries by the Office of the Auditor-General of the Federation over revenue losses through corporate entities, summoned the Nigeria Customs Service (NCS), the Federal Inland Revenue Service (FIRS) and Nigeria Investment Promotion Commission (NIPC), to explain their roles in the matter.
The FIRS, NIPC and Indorama Petrochemical, the company at the centre of the investigation, appeared before the Oluwole Oke-led committee yesterday.
Speaking, the committee chairman, Oluwole Oke, said Indorama was one of the major companies indicted by the customs for not paying proper tax as a result of duty waivers and other tax incentives it was enjoying.
He lamented that foreign corporate entities operating in Nigeria were shortchanging the country through various means by evading proper tax payments and obtaining incentives and waivers through dubious means.
On his part, the chairman of the FIRS, Muhammad Nami, informed the committee that although the commission was responsible for tax collection, it does not issue tax waivers to any local or foreign investors in the country as the FIRS Act did not give it power to grant such incentives.
After the submissions, the committee directed Indorama to provide the details of its operations, revenues and all documents related to the various incentives it was offered by government’s revenue collecting agencies.