Business

FG grants 27 industries 3-year tax holiday

FG to establish new manufacturing hubs to boost economy

The Federal Government has announced a list of 27 industries that will benefit from a tax holiday for at least three years.

The exemption follows the lifting of administrative suspension on processing Pioneer Status Incentives (PSI) applications, following the conclusion of critical reforms to the incentive regime.

This was made known on Monday in a statement from the Ministry of Industry, Trade and Investment signed by Constance Ikokwu.

According to him, the Minister, Dr. Okechukwu Enelamah said the Federal Executive Council (FEC) at its last meeting approved the lifting of the suspension, a new guideline and a revamped Pioneer list with the addition of 27 key industries and deletion of two industries and a biennial review of the list going forward.

He said, “In line with the reform provisions, all additions will be added to the list immediately, and all deletions will be removed from the list in 3 years”.

He explained that the review of the list of Pioneer industries and products was done to bring it in line with the economic realities of Nigeria and the Economic Recovery and Growth Plan (ERGP).

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Enelamah went on to say that “The Federal Government is committed to encouraging and attracting investments into critical sectors of the economy which will significantly impact development and deliver key benefits to the country.”

He added: “These benefits include Economic Growth and Diversification; Industrial and Sectoral Development; Employment; Skills and Technology Transfer; Export Development; and Import Substitution.”

“The PSI grants companies making investments in qualifying industries and products a tax holiday from the payment of company income tax for an initial period of three years, with the possibility of an extension for one or two additional years.

“An industry or product is designated as pioneer if it is not being carried on in Nigeria on a scale suitable to the economic requirements of the country or not at all; or where there are favourable prospects for further development; or if it is expedient in the public interest to encourage the development and establishment of an industry in Nigeria”, the statement read in part.

Below is a list of the benefitting industries:
1. Mining and processing of coal;

2. Processing and preservation of meat/poultry and production of meat/poultry products;

3. Manufacture of starches and starch products;

4. Processing of cocoa;

5. Manufacture of animal feeds;

6. Tanning and dressing of Leather;

7. Manufacture of leather footwear, luggage and handbags;

8. Manufacture of household and personal hygiene paper products;

9. Manufacture of paints, vanishes and printing ink;

10. Manufacture of plastic products (builders’ plastic ware) and moulds;

11. Manufacture of batteries and accumulators;

12. Manufacture of steam generators;

13. Manufacture of railway locomotives, wagons and rolling stock;

14. Manufacture of metal-forming machinery and machine tools;

15. Manufacture of machinery for metallurgy;

16. Manufacture of machinery for food and beverage processing;

17. Manufacture of machinery for textile, apparel and leather production;

18. Manufacture of machinery for paper and paperboard production;

19. Manufacture of plastics and rubber machinery;

20. Waste treatment, disposal and material recovery;

21. E-commerce services;

22. Software development and publishing;

23. Motion picture, video and television programme production, distribution, exhibition and photography;

24. Music production, publishing and distribution;

25. Real estate investment vehicles under the Investments and Securities Act;

26. Mortgage backed securities under the Investments and Securities Act; and

27. Business process outsourcing.

 

 

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