* Flutterwave, Flour Mill, 8 others affected
* Grants Pioneer Status Incentives to 6 companies, 132 applications pending
The Federal Government through the Nigerian Investment Promotion Commission (NIPC) has released the report on Pioneer Status Incentives (PSI) Application for the first quarter (Q1) of 2021.
According to Nairametrics.com, the action is in compliance with the requirements of the Industrial Development (Income Tax Relief) Act cap 17, laws of the Federation 2004 and the Pioneer status (Delegation of certain statutory functions) order of 2017.
In the report, NIPC rejected the application of 10 companies seeking pioneer status under the Industrial Development Income Tax Act in Q1 2021.
Some of the companies that had their applications turned down include Flour Mill of Nigeria Plc, Flutterwave Technology Solutions Limited, Fountain Manufacturing company, Al-Hamsad Rice Mill Limited, Engie Fenix Nigeria Limited, Royal Foam Product Nigeria Limited, Echostone Development Nigeria Limited, Benchmark Construction Limited, Super Packaging Limited and Envoy Hotel Limited.
Further analysis of the first quarter Pioneer Status Incentive report obtained from the NIPC showed that 17 companies had their applications approved in principle, 6 firms were granted PSI for a three-year period, 33 firms were currently benefitting from the tax incentive scheme and eight applications were extended.
Also, the requests of 132 companies, Nairametrics.com reported, were still pending while 24 new applications were received in addition to five extension applications that were received.
The six companies that were granted a tax holiday within the period are Pan African Towers Ltd, African Foundries Ltd, Aarti Rolling Mills Limited, Princess Medi-Clinics Nigeria Ltd, Medlog Logistics Ltd and Tiamin Rice Ltd and they had invested N45.5 million into the Nigerian economy.
The NIPC report revealed that these companies were denied tax exemptions for various reasons ranging from ineligibility of business activities for which incentives were sought to late submission of applications.
Echostone Development Nigeria Limited, a real estate development firm, for instance, had its application denied on March 29 because its contract project was not allowed under the Industrial Development Income Tax Relief Act.
Also, the applications of Fountain Manufacturing Company Limited and Super Packaging Limited were rejected as the activities for which the incentive was sought were not covered in the PSI scheme.
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