Pioneer Firms, Products to Enjoy Tax Holiday
By Dipo Olowookere
Federal Government has reviewed the list of pioneer industries and products as well as release fresh guidelines for the application for Pioneer Status Incentives (PSI).
Minister of Minister of Industry, Trade and Investment, Dr Okechukwu Enelamah, who disclosed this in Abuja, explained that this was done to encourage and attract investments into critical sectors of the Nigerian economy which will significantly impact development and deliver key benefits to the country.
According to Mr Enelamah, at the Federal Executive Council (FEC) meeting held last Wednesday, the council approved the lifting of the administrative suspension on processing PSI applications.
In September 2015, government placed an administrative suspension on the processing of PSI applications to allow for a comprehensive review and reform of the incentive regime.
But with the latest development, companies and products applying for the PSI will enjoy tax holiday for three years with the option of an extension for one or two more years.
It is important to note that for an industry or product to enjoy a pioneer status, it would be considered if it was 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.
Commenting on the matter, Executive Secretary of the Nigerian Investment Promotion Council (NIPC) Ms Yewande Sadiku, noted that, “The reforms have brought further clarity, predictability and process efficiency to the PSI regime.
“We will continue the reform process as we plan to take the PSI application process online. We will also engage with relevant stakeholders with a view to updating the existing legislations.”
Part of the industries to enjoy this gesture is the creative industry, which has in recent times contributed to the Gross Domestic Product (GDP) of Nigeria.