NIPC Urges Healthcare, Pharmaceutical Firms to Seek Tax Holiday
By Adedapo Adesanya
The Nigerian Investment Promotion Commission (NIPC) has disclosed that companies in the healthcare and pharmaceutical sectors qualify for a three to five-year tax holiday.
According to a notice dated April 14 on the commission’s website, this step was made available to encourage investments in the healthcare and pharmaceutical sectors.
The agency noted that several activities in these sectors qualify for the stipulated three to five-year company income tax holiday.
The commission further disclosed that the tax holiday will be administered under the Pioneer Status Incentive (PSI) Scheme.
The PSI was established by the Industrial Development (Income Tax Relief) Act, of 1971 and is a tax holiday which grants qualifying industries and products relief from payment of corporate income tax for an initial period of three years, extendable for one or two additional years
The pioneer status exempts qualifying companies from payment of corporate income tax for an initial period of three years
The pioneer status for these sectors can further be extended for one or two additional years.
In the medical and pharmaceutical industry, activities that qualify for tax holiday are: manufacture of pharmaceuticals and medical chemicals.
It was also disclosed that companies that manufacture irradiation, electromedical, and electrotherapeutic equipment; manufacturers of medical and dental equipment and supplies; and also, those involved in the construction and operation of non-residential buildings all qualifies.
Others include equipment such as laboratory sterilisers, hearing aids, medical thermometers, CT scanners among several others.
This is not limited to the health sectors alone, the NIPC clarified that other sectors that qualify for pioneer status are agriculture, mining and quarrying, manufacturing, electricity and gas supply, waste management, construction, trade, information and communication, major sectors of the economy.