Manufacturers lament burden imposed by several government agencies
By Jeph Ajobaju, Chief Copy Editor
Manufacturers have urge Abuja not to stifle businesses with multiple taxes against the background of another new policy to tax plastics used in factory production.
They argued this would amount to double taxation, worsening profitability, especially as the government is already collecting customs duty on raw materials during clearing at the sea port and exercise duty from beverages factories.
Taxes under different names levied on entrepreneurs at different levels of operation make it difficult for them to break even not to talk of profit, one businessman said.
Manufacturers are complaining about a letter from the Nigerian Customs Service Customs (NCS) spelling out a new tax entrepreneurs must pay
“The revised excise duty rate on alcoholic beverages and tobacco is in line with existing excise regime implementation period and shall take effect from 1stJune 2023 and review upward by 1st June 2024, also the approval of the duty collection on single use plastics (SUP) at the rate of 10% AD-valorem shall take effect from 1stJune 2023,” the letter said, per Vanguard reporting.
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Finding faults with business operations
“What it means is that we must go to the Customs and pay an amount of money. You cannot go there and not pay money whether you are making profit or not,” a businessman said, according to Vanguard.
Another entrepreneur said he knows Customs officials would start visiting his factory based on the letter.
“We usually receive this kind of notice. And when they come, they will start finding faults with your production and your business,” he said.
“Customs will come, NAFDAC [National Agency for Food and Drug Administration and Control] will come, and even police.
“At the end of the day, you find yourself spending too much money that affects your production.”
He recounted how last year he had a running battle with tax collection agencies, to the extent he could not concentrate on his factory, saying sometimes, it is difficult to know which memo is actually from the agencies.
Entrepreneurs have before now complained about such taxes as Value Added Tax (VAT), withholding tax, company income tax, stamp duties and capital gains tax amongst others.