FG Extends Tax Holiday To Music, Movie Producers

The federal government on Thursday granted ‘Pioneer Status’ to the creative industry, which covers music, movie, photography and publishers.

In a statement issued in Abuja on Thursday, the Minister of Information and Culture, Lai Mohammed, said the decision to grant the industry ‘Pioneer Status’ is in fulfilment of the promise made by the Acting President, Yemi Osinbajo, during the Creative Industry Financing Conference in Lagos last month.

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Mr Mohammed said the initiative was triggered from key issues raised by participants at the Creative Industry Financing Conference.

The landmark move according to the minister is aimed at transforming the industry to a creative economy and creating jobs.

The ‘Pioneer Status’ is granted to companies making investments in qualifying industries and products as tax holiday from the payment of corporate income tax and withholding tax on dividend from pioneer profits for an initial period of three years, extendable for one or two additional years.

“This is a shot in the arm for the Creative Industry, and it will definitely catalyse investments in the industry. It is also the answer to our quest to spur the establishment of world class studios in Nigeria for production and post-production of movies and music videos,” the minister said.

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“It is a measure of the increasing importance attached to the industry by the federal government that these issues are now being handled with utmost urgency.

“First, the ‘Pioneer Status’ has been granted within three weeks of the conclusion of the conference.

“Secondly, an Anti-Piracy Committee, comprising representatives of the Federal Ministry of Information and Culture, industry stakeholders and the police, has been set up to work out the modality for tackling piracy in a lasting and sustainable manner.

“We are determined to do more for the creative industry in order to allow the creative talents of our youths to blossom, create massive jobs and position Nigeria as a global hub for the industry,” Mr Mohammed added.

The decision comes hours after the Federal Executive Council, FEC, granted tax holiday to 27 new industries in the country.

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The ‘Pioneer Status’ for the Creative Industry covers music production, photography and post-production of digital content for motion pictures, videos, television programmes, commercials, books and software applications.

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