Dangote, Mikano, 105 companies benefiting from FG’s tax holiday- NIPC

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About 107 companies are currently benefiting from the
federal government’s tax exemption.

 

This is contained in the fourth quarter (Q4) 2023 report on
pioneer status incentive application published by the Nigerian Investment Promotion
Commission (NIPC).

 

The pioneer status incentive (PSI) is a tax holiday that
grants qualifying industries and products relief from payment of corporate
income tax for an initial period of three years, extendable for one or two
additional years.

 

The incentive, which is provided with three years of tax
relief under the Industrial Development Income Tax Act, is widely recognised as
an industrial measure meant to encourage economic investment.

 

According to the report, the number of beneficiaries
enjoying pioneer status under the Industrial Development Income Tax Act
increased from 83 in the first quarter (Q1) of 2023 to 107 firms by Q4 of 2023.

 

The 107 firms collectively invested over N2.49 trillion in
2023.

 

Amongst these firms that are beneficiaries of the PSI
include manufacturing, solid material, pharmaceuticals, information and
communication, trade, construction, waste management, electricity and gas
supply, tourism, infrastructure, hotel development, agriculture, and others.

 

The report further revealed the requests of 79 firms were
newly received, 211 firms were pending; and 56 companies had their applications
approved in principle.

 

Also, 18 firms were granted incentive extensions — out of
which, 13 have a three-year extension, while Honeywell Flour Mill and four
others received two years extensions.

 

NIPC said: “Extension approvals are subject to the payment
of application fees and only take effect after the payment of such fee.”

 

“Approvals-in-principle are subject to the payment of
application fees and only take effect after the payment of such fees.”

 

The companies that have benefitted include Dangote
Fertilizers, Mikano International Limited, Sinotrucks West Africa Limited, West
African Cubes Limited, Jigawa Rice Limited, JMG Nigeria Limited, Rain Oil
Limited, Okpella Cement Plc, Greenville Liquified Natural Gas Company Limited

 

Also on the list are GZ Transport and Logistics Nigeria
Limited, African Foundries Limited, Royal Pacific Group Limited, Kunoch Hotels
Limited, Princess Medi Clinics Nigeria Limited, Medlog Logistics Limited, and
Masters Liquefied Gas Company Limited.

 

Others are Aarti Rolling Mills Limited, Von Automobile
Nigeria Limited, Ikorodu Steel Mills Limited, Confluence Metals Fabrication
Company Limited, Cormart Nigeria Limited, Tiamin Rice Limited, Outsource Global
Technologies Limited, Crown Flour Mills Limited, Elvis Hotels Nigeria Limited,
Olam Hatcheries Limited, among others

 

Meanwhile, on December 14, 2022, the federal government said
it was working on phasing out the “antiquated” pioneer status incentive and
other tax exemptions for mature industries with the 2022 finance bill.

 

Also, Taiwo Oyedele, chairman of the presidential tax reform
committee, on September 23, 2023, said the federal government would review tax
waivers given to companies operating in Nigeria.

 

According to Oyedele, the incentives gulp N6 trillion every
year.

 

He also said Nigeria has not been very “prudent and
transparent” in granting tax waivers, adding that the tax reform committee is
looking into the situation and will ensure tax collection is fair.

 

Also, on February 20, the senate committee on finance frowned
on the N17 trillion loss incurred by the country on tax waivers within the last
five years.

The committee also told the Federal Inland Revenue Service
(FIRS) to suspend the tax waivers.

 



Source link: Nigerianeye

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