The Federal Government has received applications for tax relief from 24 Nigerian businesses in the first three months of the year, with 10 rejected.
The Nigerian Investment Promotion Commission (NIPC) disclosed this in a report on Pioneer Status Incentives (PSI) Application for the first quarter of 2021 published on its website on Sunday.
According to the report, the 10 companies whose applications were rejected were Flour Mill of Nigeria Plc, Flutterwave Technology Solutions Limited, Fountain Manufacturing Company, Al-Hamsad Rice Mill Limited, and Engie Fenix Nigeria Limited.
Others were Royal Foam Product Nigeria Limited, Echostone Development Nigeria Limited, Benchmark Construction Limited, Super Packaging Limited and Envoy Hotel Limited.
The companies’ applications for tax exemptions were rejected for reasons ranging from ineligibility of business activities for which incentives were sought to late submission of applications.
The pioneer status which is an incentive offered by the federal government which exempts companies from paying income tax for a certain period.
This tax exemption can be full or partial.
The incentive is generally regarded as an industrial measure aimed at stimulating investments into the economy.
The products or companies eligible for this pioneer status are products or industries that do not already exist in the country.
The report showed that 17 companies had their applications approved in principle, six firms were granted PSI for a three-year period, 33 firms are currently benefitting from the tax incentive scheme and eight applications were extended.
Also, the requests of 132 companies were still pending while 24 new applications were received in addition to five applications for an extension.
The six companies that were granted a tax holiday within the period are Pan African Towers Limited, African Foundries Limited, Aarti Rolling Mills Limited, Princess Medi-Clinics Nigeria Limited, Medlog Logistics Limited, and Tiamin Rice Limited.
They had invested N45.5 million in the Nigerian economy as at March 31.
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