Tax holidays may be introduced for new business ventures for at least first five years from the date of incorporation for those taxpayers who incorporate their businesses as LLP and companies, he further added.
Baig highlighted the special incentives allowed by the government to investors for the industries in SEZs which includes one-time exemption from duty and taxes on import of plant and machinery, five-year tax exemption during construction and development of projects, ten-year
tax holidays during operation and production started by 30th June, 2020 and additional five-year
tax holidays making total 20 years of tax exemption.
He stressed the need to put pressure on the Federal Inland Revenue Service to raise the tax bar in such a way that N30,000 minimum wage would fall below taxable income, while he also called for
tax holidays for some categories of Nigerian workers.
Even experienced tax professionals find it nearly impossible to stay on top of the plethora of sales
tax holidays, which occur in some states, on a limited number of days, on specific products, once or twice a year.
As PEZA and BOI-registered enterprises, they put up factories and manufacturing operations here in our country that entitled them open-ended
tax holidays and other fiscal incentives, especially for those engaged in pioneering industries.
Meanwhile, some back-to-school
tax holidays got underway, with Alabama kicking off with tax breaks between July 20 through July 22 and is the first of 17 states to offer such incentives for school supplies.
With the first package of the Tax Reform for Acceleration and Inclusion (TRAIN) program of the administration already made into law, the Department of Finance (DOF) is setting its sight on the second package which aims to give the finance secretary the authority to rationalize the grant of income
tax holidays and other perks to industries.
In particular, the concept of
tax holidays, which are provided to conscientious taxpayers faced with temporary financial difficulties for a period of up to twenty four months from the date of the relevant decision, appeared in the country's legislation for the first time.
Income
tax holidays and other incentives with no time limits enjoyed mostly by large businesses is costing the government over P300 billion annually in foregone revenues, according to the Department of Finance (DOF).
Mississippi and South Carolina also have similar
tax holidays for guns, according to the lobbying arm of the National Rifle Association, which supports the Texas proposal.
To help gin up sales, many stores roll out discounts and some states even get in on the act, offering sales
tax holidays for clothing, backpacks, even computers.
