One of the biggest news of the weekend was the announcement of a 3-year tax exemption for TSTV by Alhaji Lai Mohammed, Nigeria’s Minister of Information and Culture.
This got the TSTV MD/CEO, Bright Echefu, those at the launch and even beyond very excited. However, what many do not know is that there are certain types of business that qualify for the same tax exemption in Nigeria.
Are you wondering what they are? Don’t worry, we have the new list of these businesses in what is called Pioneer Relief which allows you to get 3 years tax exemption and a possible additional 2-year extension making a total of 5 years.
We know, you cannot wait here it is:
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.
This policy was initially established in the Industrial Development (Income Tax Relief) Act and then reviewed by the Nigerian Investment Promotion Commission (NIPC) created additional provisions which took effect on 30th January 2014. This latest list of industries was released by the Federal Ministry of Industry, Trade and Investment on 7th August 2017.