The Nigerian Investment Promotion Commission (NIPC) says companies in the healthcare and pharmaceutical sectors qualify for a three to five-year tax holiday.
A tax holiday is a temporary reduction or removal of a tax. Governments usually use tax holidays as an incentive for business investment.
According to a notice on the commission’s website, the tax holiday will be administered under the pioneer status incentive (PSI).
NIPC said the exemption would encourage investments in the healthcare and pharmaceutical sectors.
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The pioneer status exempts qualifying companies f from payment of corporate income tax for an initial period of three years
The pioneer status can be extended for one or two additional years.
In the medical and pharmaceutical industry, activities that qualify for tax holiday are manufacture of pharmaceuticals and medical chemicals; manufacture of irradiation, electromedical and electrotherapeutic equipment; manufacture of medical and dental equipment and supplies; Construction and operation of non-residential buildings.
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It includes equipment such as laboratory sterilisers, hearing aids, medical thermometers, CT scanners among several others.
Other sectors that qualify for pioneer status are agriculture, mining & quarrying, manufacturing, electricity and gas supply, waste management, construction, trade, information and communication, major sectors of the economy.
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