A good number of us get bitten by the entrepreneurial…
The FGN has granted 27 more activities tax free status, called Pioneer Relief. This relief, on application and approval, gets the company engaging in the activities to enjoy exemption from tax on their profits for first 3 years of production (and extension of up to 2 more years).
About 140 activities, including cement production (that Dangote enjoys, to the dismay of some Nigerians) are on the existing list.
With e-commerce on the new list, it means Konga, Jumia and others (including potentially JarusHub, the online career services company) will enjoy tax holiday of 3-5 years if they apply.
The new industries added to the PSI list are as follows:
1. Mining and processing of coal;
2. Processing and preservation of meat/poultry and production of meat/poultry products;
3. Manufacture of starches and starch products;
4. Processing of cocoa;
5. Manufacture of animal feeds;
6. Tanning and dressing of Leather;
7. Manufacture of leather footwear, luggage and handbags;
8. Manufacture of household and personal hygiene paper products;
9. Manufacture of paints, vanishes and printing ink;
10. Manufacture of plastic products (builders’ plastic ware) and moulds;
11. Manufacture of batteries and accumulators;
12. Manufacture of steam generators;
13. Manufacture of railway locomotives, wagons and rolling stock;
14. Manufacture of metal-forming machinery and machine tools;
15. Manufacture of machinery for metallurgy;
16. Manufacture of machinery for food and beverage processing;
17. Manufacture of machinery for textile, apparel and leather production;
18. Manufacture of machinery for paper and paperboard production;
19. Manufacture of plastics and rubber machinery;
20. Waste treatment, disposal and material recovery;
21. E-commerce services;
22. Software development and publishing;
23. Motion picture, video and television programme production, distribution, exhibition and photography;
24. Music production, publishing and distribution;
25. Real estate investment vehicles under the Investments and Securities Act;
26. Mortgage backed securities under the Investments and Securities Act; and
27. Business process outsourcing.