33 Firms Get Tax Waiver On N543.9bn Investment, Flutterwave Rejected.
For operating in areas new to the Nigerian economy and investing N543.88billion, 33 companies have been granted pioneer tax status under the Industrial Development Income Tax (IDIT) Act.
This means that the 33 firms will not pay income tax for a particular period.
Flutterwave, the popular Fintech is not so lucky as the federal government rejected its application alongside other Nine firms.
The pioneer status which can be full or partial is enjoyed by by-products or companies that do not already exist in the country
The incentive is generally an industrial measure aimed at stimulating investments in the economy.
The waiver is contained in the first quarter report of the Nigeria Investment Promotion Commission (NIPC), noting that the 33 companies during the year invested a total N543.88billion.
An analysis of the quarterly report showed that besides the requests of the 10 firms that were denied, three companies had their applications approved in principle, while six firms were granted PSI for three years.
The report also revealed that the requests of 132 companies were still pending while as of March 31, 2021, the firms granted tax reliefs had invested a total of N45.5billion in the Nigerian economy.
The 2021 second-quarter report showed that eight firms that invested N12.8 billion got tax holidays while seven firms got approval in principle.
During the second quarter also, 31 firms benefitted from the tax incentive scheme, while the requests of 160 companies were still pending.
A breakdown of the tax incentives for the third quarter showed eight firms who invested N328.5 billion got PSI while the requests of two companies were rejected.
Also, 16 firms got approval in principle from the NIPC while 168 applications were still awaiting and 35 companies got tax incentives in Q3.
In the Q4 report of NIPC, six companies were granted tax relief for three years having invested N157.08billion
They are First Independent Power Company, Cormart Nigeria Limited, Premium Agro Chemicals Limited, West African Soy Industries Limited, Prudent Energy and Services Limited, and Checkers Africa Limited.
The Q4 report also revealed that 13 companies had their applications approved in principle while the application of one company was denied.
In total in 2021, 46 companies benefited from the tax incentive scheme while the requests of 186 companies were still pending.
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