By Ediri Ejohwith Agency report
THE Federal Government has accused oil companies of not paying stipulated gas flaring penalties, amounting to loss of revenue in billions of dollars into government coffers.
Minister of Finance, Kemi Adeosun, said the companies are taking advantage of the wording in the legal framework which stipulates charges instead of penalties for gas-flaring.
Speaking in Abuja, Adeosun explained that the legal framework for the gas-flaring penalty was drafted as a charge, which is tax deductible.
She said: “What do the international oil companies do? They flare; they pay the charge on which they get tax relief. That’s just bad drafting. The government is approaching lawmakers to amend the law and have the word ‘penalty’ replace ‘charge’. Just that one word has potentially cost us billions of dollars.”
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