Sunday, July 21, 2024

Dangote, Others Enjoyed N390.26bn Tax Waivers In Two Years

According to findings, about 71 companies enjoyed N390.26bn pioneer status incentives in two years.

Data obtained from the Federal Inland Revenue Service annual reports showed that pioneer status incentives gulped N1.43bn in 2021 and N388.83bn

The Federal Government grants tax holidays to companies with pioneer status awarded by the Nigerian Investment Promotion Commission.

This tax incentive was in accordance with the Industrial Development Income Tax Relief Act, No 22 of 1971, to boost investment in the industries.

The tax holiday which grants qualifying industries and products relief from payment of corporate income tax is for an initial period of three years, extendable for one or two additional years.

The products or companies eligible for this pioneer status are meant to be those that do not already exist in the country.

The second quarter 2022 report by the NIPC (which was the last released document by the commission) disclosed that there were about 71 beneficiaries of this tax incentive.

However, at the end of 2021, 46 companies had benefitted from the tax incentive scheme while the requests of 186 companies were still pending.

This means there were 25 more beneficiaries of the tax incentives within six months.

The beneficiaries operate in sectors that include manufacturing, solid material, pharmaceuticals, information and communication, trade, construction, waste management, electricity and gas supply, tourism, infrastructure, among others.

The companies that have benefitted included Dangote Sinotrucks West Africa Limited, Lafarge Africa Plc, Honeywell Flour Mills Nigeria Plc, Jigawa Rice Limited, and Stallion Motors Limited.

More included African Foundries Limited, Royal Pacific Group Limited, Kunoch Hotels Limited, Princess Medi Clinics Nigeria Limited, Medlog Logistics Limited, and Masters Liquefied Gas Limited.

Others included 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.

The Federal Government recently disclosed plans to review and reduce tax waivers given to companies operating in Nigeria.

The Chairman of the Presidential Tax Reform Committee, Taiwo Oyedele, recently said the committee would carry out a comprehensive tax waiver review in line with the plan the previous administration had set.

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