Government Urged to Revise Tax Exemptions as Parliament Approves $300 Million Loan Despite Opposition”.
The decision, reached after intense deliberation on March 8, has sparked renewed pleas for the Government to overhaul the nation’s tax exemptions framework instead of relying solely on loans that imperil the country’s future.
When afforded the floor by the Speaker, Finance Minister Dr. Mohammed Amin Adam sought to assuage the concerns raised by Minority Members of Parliament.
He clarified, “Let me take this opportunity to address a few concerns. Firstly, I want to emphasize that this is not an IMF facility; rather, it is a World Bank initiative. It comprises a concessional loan spanning 25 years, with a grace period of five years and an interest rate of approximately 1.25 percent. Notably, it incorporates a grant element of 26 percent.”
“It is concessional, and this house is familiar with such concessional facilities. Secondly, it is budget support. This same house approved the financing for the 2024 budget, totaling 61 billion. This loan is one of the facilities we are pursuing to finance the 2024 budget. As we already know, the 2024 budget allocated resources to different projects and programs for the year.”
“I want to assure them [the Minority] that I will review these exemptions. I will rationalize them, and I’ll report back to Parliament in two weeks. I hope that when I return, honorable members will support me in whatever rationalization we undertake,” he concluded.
