REVEALED! 27 Industries Permitted Not To Pay Tax For 3 Years
The Nigerian government surely means business.
They have asked 27 new industries not to pay tax for the next three years so that they can grow and expand.
This is called Tax Holiday.
It is a temporary reduction or elimination of tax. Governments usually create tax holidays as incentives for business investment.
Nigeria’s Federal Executive Council on Wednesday approved this status for 27 new industries and products.
The list was last reviewed in 2006 and the approval was to bring the industrial policy of the country to global best practices.
The Minister of Industry, Trade and Investment, Okechukwu Enelamah, said this while addressing State House Correspondents on the decisions of FEC.
“The FEC gave approval to a memorandum that was presented to amend the list of pioneer industries and products that will enjoy pioneer status going forward.
“The pioneer incentive scheme is governed by the Industrial Development Income Tax Relief Act.
“The whole purpose of it is to give tax holidays to industries that we consider pioneer, not mature, to enable them to grow and attract investment in them,’’ Enelamah said.
He said that the list covers a wide range of industries and the tax relief could extend from three to five years.
Read More: How To Obtain Your Tax Identification Number
Federal authorities are desperate to return the country's economy to winning ways after the IMF frowned at some policies being implemented by the Central Bank of Nigeria.