Dangote, 7UP, Mikano, Others May Lose Tax Waivers in New Finance Bill
- A company belonging to Aliko Dangote and 172 other companies will lose tax waivers from the federal government
- The move comes as there are revelations that the Nigerian government would strip mature firms of tax incentives
- The action is part of the 2023 Finance Bill sent to the National Assembly for approval by President Muhammadu Buhari
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About 172 firms may not benefit from N2.4 trillion tax waivers under the Pioneer Status Incentive (PSI) and other tax exemptions as the Nigerian Nigerian government moves to end some tax waivers effectively in 2022.
The government is ending the tax exemptions for mature industries with the 2022 Finance Bill, which President Muhammadu Buhari sent to the National Assembly for approval.
Source: UGC
172 companies in 71 sectors to be affected
A report by the Punch states that the Minister of Finance, Budget and National Planning, Zainab Ahmed, said the bill is to support the 2023 budget as the government ramps up efforts to grow tax revenue.
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The new move will affect companies in 71 sectors eligible for PSI.
The sectors include manufacturing, solid material, ICT, trade, construction, waste management, electricity and gas supply, tourism and infrastructure.
The PSI report released by the Nigeria Investment Promotion Commission (NIPC) said that 172 companies are awaiting approval to benefit from the tax incentive.
The companies include Dangote Coal Mines Limited, 7UP Bottling Company Limited, Mikano International, Limited, AA Rano Nigeria Limited, CCECC Nigeria Limited, Corinthia Villa Hotel and Suites Limited and Red Star Oil and Gas Limited.
Others are Max Air Limited, Dukia Gold and Precious Metals Refining Company Limited, Segilola Resource Operating Limited, among others.
The PSI is an incentive the Nigerian government gives to exempt companies from paying income tax for a certain period, either in whole or partial.
Under the Industrial Development Income Tax Act with tax reliefs for three years, the initiative is an industrial measure meant to stimulate economic investments.
Beneficiaries that may lose waivers
The products or companies eligible for the pioneer status are not already existing in Nigeria.
The second quarter report by the NIPC stated that about 71 beneficiaries of the tax incentive were operating in sectors such as manufacturing, solid material, ICT, trade, waste management, electricity and gas supply, tourism, and infrastructure, among others.
The Nigerian government intends to introduce more sin taxes and reduce tax incentives in 2023 through the proposed 2022 Finance Bill, according to a copy of the bill released recently.
Dangote Now Richer Than Over 30 African Countries as Price of Dangote Cement
Recall that Legit.ng reported that Africa’s richest man, Aliko Dangote’s worth has risen by N8.4 trillion due to recent demands for his cement unit, Dangote Cement and the recently completed fertilizer plant.
According to a Bloomberg's report, his wealth surged to $20.1 billion (N8.4 trillion) last Friday.
Bloomberg’s Billionaire Index put his networth at $26.27 billion (N11 trillion) which he achieved in 2014.
Source: Legit.ng
