The Federal Inland Revenue Service (FIRS) and the Nigerian Investment Promotion Commission (NIPC) recently inaugurated a Joint Committee comprising members of staff of both agencies “to review the current guidelines for administration of the PSI, validate the cost of the incentive to Nigeria and recommend changes to the qualification and administration.”
Describing the Pioneer Status Incentive, the NIPC said, “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 Executive Secretary, NIPC, Ms Yewande Sadiku, “the Commission understands the responsibility it shoulders in relation to administering the PSI and exercises great diligence in processing applications.”
For the Executive Chairman, FIRS, Mr Muhammad Nami, “…members of the Committee (are) to invest their energy into the exercise as it is a means to assist government to achieve an enabling business environment, bearing in mind the responsibility of government to fund budgetary needs.”
The Committee is a short-term committee as it is expected to complete its TOR in three months, the NIPC said.
Azuka Edokobi is a Writer and Entrepreneur