Senate amends companies income tax act

Lawan Hamidu, Abuja.

Financial district in Lagos

The Senate has passed the bill for an Act to amend the Companies Income Tax and for Other Matters law to encourage investment in the industrial and mining sectors of the economy.

The bill which was sponsored by Senator Andy Uba specifically seeks to amend Sections 34, 36, 39 and 40 of the principal Act.

The new clauses in the Bill canvass a ten-year tax exemption for a new company going into business where infrastructure such as electricity, water, or tarred road are not provided by government, while companies with investment in the mining and gas industries, respectively would be exempted for five years.

Leading the debate, Senator Uba said the proposed amendments are to encourage investments in the industrial and mining sectors especially in rural areas where ordinarily it would have been unattractive to invest.

He added that the Bill speaks directly to the issues of stimulating economic activities through greater tax incentives, engendering Economic Development, promotion of industrialization and job creation in Nigeria.

Senator Uba said  “when the Bill is passed into law, it is expected that the economic activities that would be generated through tax moratorium assured by the proposed Act, will generally provide the hitherto elusive employment opportunities for our qualified youths, who today are roaming the streets of the urban areas in search of non-existent jobs.”

Senators described the Bill as one of the potent tools that could trigger the much-desired investments in local manufacturing and industrialization by both foreign and local companies, and would  provide an opportunity for the development of rural areas through the provision of infrastructure by members of the Private Sector.

They believe that the expected economic activities to be generated by virtue of the provisions of the amendments sought are to be concentrated in the rural and semi-urban areas, where infrastructure is lacking.