Africa Business Radio

The federal government has limited companies involved in the trade or business of gas utilisation in downstream operations in the country to a once in a lifetime tax-free regime, according to the latest changes effected in the Finance Act, 2021. The new law states that additional investment, re-organisation or other forms of corporate restructuring shall not qualify for a further tax incentive under the gas investment programme. Such companies are further barred from similar incentives under any other sections of the Companies Income Tax Act or other law. Companies engaged in upstream petroleum operations however would continue to have obligation to withhold VAT, even when they have not commenced commercial operations or have not reached N25 million turnover.