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Indian BPO Firm granted Pioneer Status Incentive by FG, Gets 5 year Tax Holiday

By on December 16, 2011

Spanco, a business process outsourcing firm based in India has announced that the Nigerian Investment Promotion Commission (NIPC) has granted the pioneer status incentive in respect of company`s activity in telecommunications to expand their business.

Spanco has a $ 250 Million deal with Bharti Airtel to provide call center services.

The status is a tax holiday granted to qualified industries anywhere in the federation and five year tax holiday. The grant of pioneer status to an industry is aimed at enabling the industry concerned to make a reasonable level of profit within its formative years.

The profit so made is expected to be ploughed back into the business. Pioneer status is conferred on a firm if it fails within the sectors that are defined by the government as priority areas. When a project is conferred with pioneer status, it becomes entitled to a tax holiday of 5 years.

Spanco had applied for the pioneer status and had made detailed representations to various committees and government officials on plan for expansion, contribution to the Nigerian Economy, Job creation and developing Nigeria as a hub for outsourcing activity across the African continent. The term period for this is for five years, with effect from the date of commencement of production which will be certified by the industrial Inspectorate Department of the Ministry of trade and investment, Garki, Abuja.

Shares of the technology company surged by nearly 13 percent on the Bombay Stock Exchange and Nifty Stock Exchange.