The Nigerian Investment Promotion Commission (NIPC) announced on Friday that it has granted tax holidays to 34 companies seeking tax incentives and waivers under the Industrial Development Income Tax Act for the year 2023.
Lovina Kayode, Head of Incentives Administration, revealed this information during the commission’s end-of-the-year press briefing in Abuja.
Tax incentives have been a subject of debate due to the substantial revenue losses incurred annually from granted waivers.
The NIPC justifies these incentives as a strategy to attract foreign investments into the country.
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In September, the Federal Government disclosed that companies operating in Nigeria receive tax incentives amounting to N6tn annually.
Mr. Taiwo Oyedele, Chairman of the Presidential Tax Reform Committee, had earlier stated that a comprehensive review to reduce tax waivers would be implemented.
Despite reports indicating an average annual tax waiver figure of about N5tn, companies such as Dangote Sinotrucks West Africa Limited, Lafarge Africa Plc, Honeywell Flour Mills Nigeria Plc, Jigawa Rice Limited, and Stallion Motors Limited have benefited from tax waivers under pioneer status incentives.
During the press briefing, Lovina emphasized that not all companies are granted tax breaks, highlighting the stringent procedures followed by the commission in awarding waivers.
The pioneer status incentive allows a company to enjoy three years without paying corporate income tax to attract more investments.
Lovina assured that the commission is committed to ensuring incentives are awarded to deserving companies.
The Executive Secretary of the commission, Aisha Rimi, reiterated the commitment to facilitate and assist investors in gaining entry into the country in the upcoming year.
She emphasized the importance of support from stakeholders to promote the commission’s activities and attract and retain investors in a competitive global environment.
Additionally, the commission plans to publish impact reports on the effectiveness of the pioneer status incentive, focusing on job creation and other economic activities that promote investments.
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