The pioneer status incentive for cement manufacturing in Nigerian has elapsed, as cement manufacturing was scheduled to go off the list of pioneer industries and products, from August 2020 in the absence of any changes by Nigerian Investment Promotion Commission (NIPC) as stated on the list published on 14th August 2017.
The Pioneer Status Incentive 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.
According to the 14 August 2017 list, the manufacture of “Clinker and cement” will be on the list until “01 August 2020”
Extract from the list, source NIPC list of pioneer industries and products
There are 99 sub-sectors still on the list of pioneer industries and products include crop production, livestock, fishing, forestry, mining of coal, Refining of Crude Oil and gas production, manufacture of food and beverage products, manufacturing of machinery for metallurgy, transportation, construction of building, electricity and gas supply, maintenance and repair overhaul, manufacture of motor vehicles and components and other transport equipment, manufacture of electrical equipment and electronics among others.
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In a tweet on Monday, Tolu Ogunlesi Special Assistant to President Muhammadu Buhari on Digital and New Media wrote “We are now in August 2020. Barring any changes, Cement is now off the Pioneer Status Incentives (PSI) List. Meanwhile, E-commerce, Software, Animation, Music, Film and TV were added to the list in 2017/18.”
Written by;
Ifunanya Ikueze
