Chinazor Megbolu |
The Minister of Works, Power And Housing, Babatunde Raji Fashola has said Flour Mills of Nigeria Plc will construct the Atan-Agbara road, while Dangote Group is already doing so under the Road Infrastructure Tax Credit (RITC) scheme.
He made this known in his address on The Platform, a virtual event organised on Thursday to celebrate the country’s 60th Independence Anniversary.
Recall that President Buhari, in January 2019, signed executive order 7 (the “Companies Income Tax Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme) in a bid to attract Public Private Partnership (PPP) financing for road construction across the country.
Fashola explained that the RITC scheme grants income tax credit to organisations and individuals that provide funding for the refurbishment and rehabilitation of roads.
Fashola further hinted said that Dangote Group is investing about N77 billion, which it would have spent on tax, on constructing the Apapa-Oworonshoki road.
According to him; “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”.
He maintained that there’s been a significant development so far on roads construction in Lagos, Kabba and Bonny Island under the RITC scheme.
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