Honeywell Flour Mills and seven other companies have been granted pioneer status initiative (PSI) by the Nigerian Investment Promotion Commission (NIPC) which will exempt them from paying taxes for three years.
This was done during the first quarter of 2020 as contained in the commission’s first quarter report.
The other companies which received the approval-in-principle were Main Data Nigeria Limited, Apple & Pear Nigeria Limited and Tranos Contracting Limited.
Others that got three years of tax holidays are Elvis Hotels, Medlog Nigeria Limited, Kalambina Cement Company and Wells Hosa Greenhouse Farms.
Obu Cement Nigeria Limited got a two-year extension of the tax holiday.
The commission also said it received 18 new applications, three of which were denied, and one application for an extension during the first quarter.
Industries that qualify for the PSI are given a three-year holiday from paying company income tax for an initial period of three years with the possibility of an extension for one or two years.
This incentive is listed in the Industrial Development (Income Tax Relief) Act, which is administratively regulated by the NIPC.
“The companies made a total investment of N151.916 billion, have 1,460 staff and are in various sectors including agriculture, construction, administrative service, information and communication, and manufacturing.
“One company was granted extension for two years; the company had a total investment of N88.700 billion, while its staff strength was 573,” a statement by the commission read.
According to the report, 39 companies were enjoying the PSI as of March 31, 2020, with 125 applications are still pending, and no PSI certificate has been cancelled.
The Pioneer Status Incentive (PSI) was established by the Industrial Development (Income Tax Relief) Act, No 22 of 1971 and is a tax holiday which grants qualifying industries and products relief from payment of corporate income tax for an initial period of three years, extendable for one or two additional years.
