- Post by Admin on sunday, March 05, 2015
The federal government plans to extend tax waivers to investors who build mid-stream projects such as refineries, oil pipelines and terminals/jetties. The proposal is contained in a draft National Petroleum Fiscal Policy produced by the petroleum ministry with domestic and international industry input.
The policy addresses fiscal issues and sets out appropriate fiscal policy goals and rules for the oil and gas sector. Under the new policy obtained from the ministry in Abuja, refineries infrastructure, oil pipelines and storage systems will now benefit from similar terms obtainable under Section 39 of the Company Income Tax Act (CITA).
Section 39 of the CITA stipulates, among others, that a company engaged in gas utilization (downstream operations) shall be granted, "(a)an initial tax‐free period of three years which may, subject to the satisfactory performance of the business, be renewed for an additional period of two years."