Manufacturers groan as NASS mulls 17 bills for more taxes on real sector
By Jeph Ajobaju, Chief Copy Editor
There are least 17 bills for more taxes on manufacturing being considered by the National Assembly (NASS) to top up multiple levies and fees already imposed on the real sector, the Manufacturers Association of Nigeria (MAN) has lamented.
MAN Director General Segun Ajayi-Kadir moaned manufacturers are overburdened by multiple taxes and levies and fees triggered by excessive revenue drive by Abuja.
“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 argued.
“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 per cent of net profit), the Youth Entrepreneurship Development Trust Fund Bill (1 per cent of net profit) and the 2 per cent surcharge on all imports including raw materials, spares and machines).
_________________________________________________________________
Related articles:
Manufacturers incur N67.8b cost sourcing alternative energy
Manufacturers complain they can’t access CBN loan
Manufacturing tops investment inflow with $8.99b
_________________________________________________________________
Choking Nigeria’s global competitiveness
“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,” Ajayi-Kadir said, per reporting by Vanguard.
“Our expectation is that government will reduce to the barest minimum the incidences of 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 has 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 corporate tax rate to 20 per cent 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 collectable by the three tiers of government.”
 to top up ...){kind=link}