As the Federal Government plans to phase out some tax waivers from 2022, at least 172 companies may not benefit from the approximately N2. 4tn tax waivers under the Pioneer Status Incentive and other tax exemptions.
The most recent government action will also have an impact on businesses working in 71 different sectors or industries that qualify for the Pioneer Status Incentive.
It was also revealed that only 14 enterprises received the PSI in Q1 while 12 received the tax incentive in Q2. However, due to the Federal Government’s intentions to phase out the pioneer tax incentive, many businesses might not be able to profit.
According to a recent report from The PUNCH, the federal government intends to increase sin taxes while lowering taxes in 2023.