The Nigeria Investment and Promotion Council (NIPC) on Tuesday said that the grant of tax-break to some industries had positive impact on the growth of the country’s economy.
Mr Joel Attah, Head, Media and Public Affairs of the council, said this in a telephone interview with the News Agency of Nigeria (NAN) in Abuja.
Attah said the grant of pioneer status to an industry was aimed at enabling the industry concerned to make a reasonable level of profit within its formative years.
He said that tax-break and other incentives which were only granted to companies with special needs had gone a long way to create favourable environment for industrial production.
“NIPC does not discriminate when considering such incentives for companies. The location and infrastructure deficit are the main indices that instigate the issuance of any incentive.
“It is important to state that no company enjoys the tax-break until it is established that sustained production has commenced in the premises.
“This privilege, which is backed by an Act, has greatly assisted in powering the economy through wealth creation and employment generation in line with the transformation agenda,’’ Attah said.
NAN reports that the Companies Income Tax Act has been amended in order to encourage potential and existing investors and entrepreneurs.
Attah further explained that “by this, prospective industry players are encouraged to positively exploit businesses that attract the incentives, thereby, resulting in competition and growth rate’’.
Attah said that NIPC had used the opportunities provided by these incentives in sustaining its campaign for the industrialisation of the country.
NAN reports that the pioneer status is a tax holiday granted to qualified industries and seven-year tax holiday in respect of industries located in economically disadvantaged local government areas.
There are no less than 69 approved industries declared as pioneer industries that can benefit from the tax holiday. (NAN)
© anu for Royal Times of Nigeria Newspaper, 2014. |
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