FG GRANTS THREE-YEAR TAX HOLIDAY TO 25 COMPANIES
The Federal Government has granted a three-year tax incentive to 25 companies under the Industrial Development Income Tax Act. A pioneer status is an incentive from the Federal Government, which exempts companies from basic income tax. The incentive is also known as tax holiday and it is generally regarded as an industrial measure aimed at stimulating investments into the economy. This means companies with a pioneer status do not have to pay tax for a certain period of time, thus allowing the firms to get established. This can be a full or partial tax exemption.
The products or companies suitable for this pioneer status are industries or products that do not already exist in the country; the existing industries do not meet the required needs. An analysis of the 2019 Pioneer Status Incentive report released by the Nigeria Investment Promotion Commission showed that 25 companies were given the three-year tax holiday. The companies that got the waivers are Royal Mills and Foods Limited, UVA Limited, Pinnacles Apartments Development Limited, Obu Cement Company Limited,
Saba Steel Industries Nigeria Limited, Gowus Nigeria Limited, Fidson Healthcare Plc, Gowus Nigeria Limited, Lafarge Africa Plc, Edimara Properties Limited and Wacot Rice Limited. Others are Tribon Aqua Africa Limited, Grand Pela Hotels, Globus Resources Limited, Karshi Agro Farms Limited, Crown Flour Mills Limited, Dharul Fertilizer Limited, Olam Hatcheries Limited, Harvestfield Industries Limited, and Jabi Mall Development Company Limited. The rest are Power Gas Global Investment Limited, Polar Petrochemicals Limited, Royal Pacific Group Limited, Montego Upstream Services Limited, Dangote Sinotrucks West Africa and Hayat Nigeria Ltd.
The Executive Secretary, Nigeria Investment Promotion Commission, Yewande Sadiku, had said that the government remained committed to attracting fresh investments to key sectors of the economy. She said the commission had entered into a series of collaborations with some operators in the private sector to unlock potential investments in the country. Sadiku also said the commission now had a seamless collaboration with the states to enable it to monitor closely investments inflow into the country. She said the NIPC was working with key stakeholders to see more Nigerians invest in the country.
The NIPC boss said there were huge investment opportunities in agriculture, transportation, solid minerals and manufacturing sectors of the economy, adding that the government was working to improve the country’s rating in the area of ease of doing business. Mr Cluley said anyone using it for sensitive conversations needed to be careful.
“Fixing these problems will take time. And those particularly high-risk users of Zoom, having highly sensitive discussions on the service, who might potentially be the target of state-sponsored attacks (for instance the UK cabinet), might be wise to find alternative, more secure methods of communication in the meantime.”