• Business - Companies
  • Updated: October 01, 2020

Flour Mills Get Tax Exemption Due To New Agreement With FG

Flour Mills Get Tax Exemption Due To New Agreement With FG

Flour Mills of Nigeria has agreed to construct the Atan-Agbara road in exchange for a tax break. The agreement falls under the Road Infrastructure Task Credit (RITC) scheme. The same scheme has been used to construct roads in Lagos, Kabba, and Bonny Island.

Building the Atan-Agbara road will earn Flour Mills of Nigeria exemption from tax payment during and after the completion of the road for a period of time. Several companies have benefited from this initiative in Nigeria, including Dangote Group - it earmarked about N77 billion for the construction of the Apapa-Oworonshoki road.

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This is because the RITC scheme is also offered to individuals that provide funding for the refurbishment and rehabilitation of roads. It's the government's way of transferring tax into project development.
According to the Minister of Works, Power, and Housing, Babatunde Fashola, “The policy, as you rightly put it, allows companies and even individuals expend what would have been their tax ahead.

"If you don’t make a profit as a company, you are not taxable. And therefore, the amount of traction you will see is a function of the turnover, the profits and taxable income that company or that individual can expend.”

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