BY VICTORIA ONU ABUJA
The Federal Government has granted three-year tax incentives to 33 companies under the Industrial Development Income Tax Act.
The Pioneer status is an incentive from the Federal Government, which exempts companies from 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 the companies with pioneer status do not have to pay tax for a certain period of time, allowing the company to get established. This tax exemption can be full or partial.
The products or companies suitable for this pioneer status are industries or products that do not already exist in the country; the existing industry do not meet the required needs or fulfill expected goals; and any industry or product for which there is a favourable prospect of development.
An analysis of the first quarter Pioneer Status Incentive report, released by the Nigeria Investment Promotion Commission, showed that 33 companies were given three years tax holidays.
The companies that got the waivers are Confluence Metal Fabricating Company, Unicane Industries Limited, Grand Pela Hotel, Globus Resources, Karshi Agro Farms, Obu Cement, Crown Flour Mills, and Pan African Towers.
Others are Hijira Fertiliser Company, Olam Hacteries Limited, Polar Petrochemicals, Dangote Sinotrucks, Royal Pacific Group, Kunoch Hotels, Medlog Logistics, Tiamin Rice Limited, Honeywell Four Mills and Masters Liquefied Gas.
The Executive Secretary, NIPC, Yewande Sadiku, had said that the government was committed to attracting fresh investments in key sectors of the economy.
She said the commission had entered into series of collaborations with 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 investments inflow into the country closely.
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 improving the country’s rating in the area of ease of doing business.
