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Music, Movie Producers, Photographers & Publishers to get Tax Break

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Music, Movie Producers, Photographers & Publishers to get Tax Break

Lai Mohammed

Nigeria’s creative industry has been granted ‘Pioneer Status’ by the Federal Government in a move aimed at turning the industry to a creative economy while generating jobs.

Lai Mohammed, the Minister of Information and Culture, made this known in a statement issued in the nation’s capital yesterday.

According to the minister, the decision is in fulfillment of the promise earlier made by Acting President Yemi Osinbajo.

He also explained that, pioneer status meant the companies that made investments in creative industries and products would enjoy a tax holiday from corporate income tax payments and withholding tax on dividend from pioneer profits for an initial period of three years, after which such companies could extend the tax holiday by an additional year or two.

“The acting president, represented by the Minister of Finance, Kemi Adeosun, made the promise to grant companies in the creative industry pioneer status on July 17, 2017.

He made the promise specifically at the opening of the two-day Creative Industry Financing Conference in Lagos. The companies it concerns are those involved in music production, publishing and distribution (including online digital distribution) and photography.

It also covers companies involved in production and post-production of digital content for motion pictures, videos, television programmes and commercials. Companies involved in distribution and exhibition (digital movies, animation, videos, television programmes and commercials) are not left out,’’ Mohammed said.

He added that companies that were into publishing of copyrighted books, development and ready-made software (operating systems, software applications and computer games) were also covered.

The minister noted that this is a milestone for the creative industry, adding that it would definitely catalyse investments in the industry.

He was optimistic that the new status would be the answer to the industry stakeholders’ quest to spur the establishment of world class studios in Nigeria for production and post-production of movies and music videos.

“I recall that the need to grant pioneer status to the creative industry as well as tackle the piracy of creative works were among the key issues raised by participants at the Creative Industry Financing Conference. 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 status was granted within three weeks of the conclusion of the conference,’’ the minister said.

Mohammed further disclosed that an anti-piracy committee made up of representatives of the Federal Ministry of Information and Culture, industry stakeholders and the Nigerian Police Force had been set up.

He explained that the committee would work out modalities for tackling piracy in a lasting and sustainable manner.

The minister thanked stakeholders in the industry for supporting the Federal Government in its efforts, adding that their support had resulted in putting the industry on the country’s economic front burner. He said that stakeholders’ support had resulted in making the creative industry a key plank of the administration’s economic diversification policy.

Mohammed promised that the government would do more for the industry to allow the creative talents of Nigerian youths blossom, create jobs and position the country as a global hub for creativity.

The News Agency of Nigeria (NAN) was established by the Federal Government of Nigeria in May 1976 to gather and distribute news on Nigeria and cover events of interest to Nigeria at the international level for the benefit of the Nigerian Media and the Public.

8 Comments

  1. bafe

    August 4, 2017 at 2:12 pm

    Kudos. This is a step in the right direction. Even the haters of this government cannot deny this.

  2. Nene

    August 4, 2017 at 2:47 pm

    Sme’s need a tax break too!

  3. peter

    August 4, 2017 at 3:01 pm

    See why i like Lai ..He said this thing during a conference last 2weeks and here you have it

  4. GANNY OGUNSHAKIN

    August 4, 2017 at 4:08 pm

    Honorable Minister of Lies Alhaji Lyingwola Mohammmed. This Is not the only sector of the Nigeria economy that needs a tax break. Tax breaks should be granted across the board not just for one sector of the economy. A tree does not make a forest. When will the other sectors of the Nigeria economy get their very own tax breaks? Selectively granting tax breaks to a particular segment of the economy is not the way forward This shows the lack of seriousness, the urgency and the commitment needed on the part of the Nigeria government for mass job creation in Nigeria. Alhaji Lie Mohammed. Inform the President that his economic agenda for Nigeria is not working. The only solution is for him to get rid of all the economic illiterates on his cabinet once and for all. The time for economic experiment is over. A word is enough for the wise. I’m just saying.

  5. Bolaji

    August 4, 2017 at 4:49 pm

    Great idea. Now let hope the execution is as great and it does not simply become a way for the rich to evade taxes. Next stop, royalties for creatives, Sir.

  6. Babe

    August 4, 2017 at 6:07 pm

    Do these creatives even pay tax? Let me just shush

    • Bolaji

      August 5, 2017 at 7:10 am

      That was my first thought but trying to keep it positive 🙂 It meas Filmhouse would actually have to say how much they make with peoples films. Cannot wait!

  7. Amaa

    August 5, 2017 at 10:19 am

    You can’t reap where you did not sow Mazi Lai. Stop pretending that you are doing them a favour by giving them tax break .
    NW has cajoled, sold their souls(some). Imagine Omotola courting billionaires to a private viewing . I am not saying this is wrong but would she be doing this if there were investments in the sector or there was access to production loans etc. It will the other way round.
    The film houses and music industries built from the scratch and you want to tax them. Ok while you at planning to tax them also put in tax deductible credit for power , security and all the things government has failed to provide for businesses to thrive .
    So for example film house A is to pay 100000 in taxes for 2017 , this payment will be less documented proof of how much spent on generators running the film house in the absence of PHCN .
    Chartered Accountants charge a norminal fee for verification of filed taxes they put a seal to the process . Make the system fool proof . if there is any fraud or collusion between the two, accountants is delisted and company is heavily fined Shikenna

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