‘Tax incentives without fixing infrastructure won’t work’
Tax incentives to industries without addressing other infrastructural challenges will not bring about the desired economic growth in Nigeria, a tax expert, Taiwo Oyedele, has said.
The expert, who is the Head, Tax and Regulatory Services at PricewaterhouseCoopers (PwC), made this known in Lagos at a tax forum.
The Federal Executive Council (FEC) had recently approved additional 27 industries to enjoy the Pioneer Status Incentive so as to encourage and attract investments into critical sectors of the Nigerian economy
But Oyewole said that the government was only embarking on a futile journey despite its intention to use the PSI to encourage and attract investments into critical sectors of the economy.
He said that the task in Nigeria should be how to attract investors based on the enabling environment and viability of the country’s business climate rather than luring them with PSI.
Oyedele described PSI as a tax holiday granted to firms not necessarily engaging in pioneering activities, but considered not mature and requiring support to grow.
Source: New Telegraph