Tax Break by Federal Government: 3 See-through Advantages

tax break

A few weeks ago, the Nigerian internet space was brimming with angry reactions to the minister of information Lai

Mohammed’s statement saying that the federal government will soon ban film and music production from going

abroad. Here at efilimu, we looked at some of the pros of this ban even though reactions to it then were mostly

negative. And prior to that, we highlighted some of the advantages of taking entertainment production abroad.

Apparently, it might seem the government means business (though in baby steps) as on Wednesday they announced

that a tax break would be given to movie producers and other stakeholders in the creative industry. This report comes

courtesy of Pulse Nigeria where the information minister Lai Mohammed is quoted saying:

 

 

”This is a shot in the arm for the Creative Industry, and it will definitely catalyse investments in the industry.

It is also the answer to our quest to spur the establishment of world class studios in Nigeria for production

and post-production of movies and music videos,”

lai Mohammed on tax break
Lai Mohammed
Image Credit: Daily Trust

 

Overall, this might be the first step by the government in making good at their word on film and music production ban

overseas, since by granting the tax break, it creates a favorable environment for practitioners to flourish. Or—probably

not. Regardless, we’ll see how it is a win for those concerned if and when it is finally implemented.

 

 

 

tax break
Tax Break
Image Credit: 123rf

1. Lessens cost of production:

The is the first clear advantage of the tax break. Money used to pay the obligatory government finances will be

channeled towards other endeavors with a resultant decrease in cost of making movies, television shows, music videos

etc

2. More profit for stakeholders

That is provided the money saved for tax still remains in the bank vaults, then the income realized from the those

partaking in the creative industry will witness a boost. The tax break is in line with one of the core objectives of

business: reduced cost

3. Increases Investment:

Provided the tax break extends towards foreigners who bring their entertainment production to Nigeria, then this is a

clear positive sign for foreign investors to bring their business to Nigeria and with more of that, it will definitely boost

our tourism and entertainment industry.

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