The Manufacturers Association of Nigeria (MAN) said there are no fewer than 17 bills aimed at imposing more levies on the manufacturing sector currently before the National Assembly (NASS), in addition to the incidences of multiple taxes/levies and fees that have overburdened the sector.
Director General, MAN, Segun Ajayi-Kadir, in a chat with Vanguard, lamented that currently, the manufacturing sector is overburdened by the incidences of multiple taxes/levies and fees occasioned by the excessive drive of government Inland Revenue.
“As we speak, manufacturers pay over 30 different taxes, levies, and fees to Agencies of the Federal, State, and Local Governments. MAN, over the years, has expressed dissatisfaction over continuous increases in taxes, excise duties, VAT, and others because we believe that multiple taxes/levies/fees depress production in the manufacturing sector,” he said.
Ajayi-Kadir further stated: “No fewer than 17 bills, aimed at imposing more levies on the manufacturing sector, are pending in the National Assembly. These include the National Youth Service Corps Trust Fund Bill (seeking to take 1% of net profit), the Youth Entrepreneurship Development Trust Fund Bill (1% of net profit), and the 2% surcharge on all imports including raw materials, spares, and machines).
“It is the preponderance of these taxes and unfriendly policy environment that constrain the competitiveness of the manufacturing sector in the global space and of course the reason for the current ranking of the country on the Ease of Doing Business Ranking.”
On the expectations of manufacturers for 2023, the MAN DG said: “Our expectation is that government will reduce to the barest minimum the incidences of a multiplicity of taxes and ensure that only approved taxes/levies/fees are charged; widen the tax net to capture those not currently paying taxes and consider reducing the various tax rates which have been the global trend in recent times to encourage investment inflow, particularly into the manufacturing sector.
“Taking a cue from key recommendations espoused in our MAN Blueprint 2.0 that was launched recently, I will posit that government urgently consider reducing the corporate tax rate to 20 percent to encourage investors in view of the various challenges being experienced by manufacturers; coordinate the enforcement of compliance to Act 21 of 1998 on Taxes and Levies collectible by the three tiers of government.”
