The federal government plans to extend tax waivers of 3 – 5 years to investors who build mid-stream projects such as refineries, oil pipelines and terminals/jetties, through Section 39 of the Company Income Tax Act (CITA), Daily Trust reports.
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 CITA.
The government in the policy document said Section 39 of CITA will be amended to include mid-stream oil utilisation in addition to gas utilization projects. There is also a plan to amend Section 39 of the CITA to include all liquefied petroleum gas (cooking gas) infrastructures, including cylinder manufacturing activities, terminals/jetties, pipelines, storage and distribution systems so that they will now enjoy section 39 of CITA benefits.