FG Grants 27 Industries Tax Holiday
The Federal Government has announced a tax holiday ranging from between three and five years to fresh 27 industries.
This followed the amendment of the list of pioneer industries and products at the Federal Executive Council (FEC) meeting presided over by Acting President Yemi Osinbajo, yesterday.
Minister of Trade and Investment, Okechukwu Enelamah, at the post-FEC briefing explained that already matured industries, have been given a three-year window before finally taking them off the pioneer status list.
He explained that the incentive scheme is meant to woo investors and in return raise the country’s tax base.
While the 27 industries were accorded pioneer status, mineral and oil prospecting governed by the Petroleum Profit Tax as well the cement industry which is deemed to have matured were struck off the list.
The minister stated that the list would be made public, adding that the mineral oil prospecting, already governed by the petroleum profit tax, was not part of the pioneer industries, same for the cement where the country already had become net exporters.
He said that rather than lose revenue, the status was an incentive to enable new industries to enter the market, enter new industries and invest more for those already in, adding that it did not remove tax payments for existing industries.
“This is fairly a well-used policy and carrot by countries and Nigeria had it before but we had to review it because it had not been reviewed since 2006.
“The whole idea is that it is an incentive to attract people to invest more in sectors,’’ he said, adding that most of the agro and agro-processing, industrialization, creative industries, power, science and technology and players should be allowed to have tax incentive.
“It will increase our tax revenue instead of the reverse,’’ he added.