FG Rejects Guinness, Promasidor , Others Application for Tax Exemption
The Federal Government of Nigeria has denied request by Guinness Nigeria Plc, Promasidor Nigeria Limited and thirteen other firms seeking tax relief, also known as “Pioneer status” under the Industrial Development Income Tax Act.
Pioneer status is a tax incentive from the Federal Government which exempts companies from income tax for a period of time. It is also known as a tax holiday and is meant to encourage investments in new industries or products that do not already exist in the country.
Companies who receive pioneer status do not have to pay income tax for a period of time, giving the firms time to establish.
The Nigerian Investment Promotion Commission (NIPC) which runs the programme said that while 10 firms were granted Pioneer status, 15 firms were rejected.
The agency also said that the applications of two firms were extended while 181 other applications were still pending.
It said that 32 firms were currently benefiting from the programme while 104 companies had abandoned their applications with the NIPC.
The 15 companies whose applications were rejected include Guinness Nigeria Plc, Promasidor Nigeria Ltd, Umugini Asset Company, Aristocrats Industries Ltd, StrongPack Limited, Grit System Ltd, Scott Industries Limited and Flexipack Ltd.