The Manufacturers Association of Nigeria (MAN) has decried how the incidences of multiple taxes/levies and fees have overburdened the sector.
MAN said the excessive drive of government for revenue generation has overburdened the manufacturing sector with incidences of multiple taxes/levies and fees.
Naija News understands that the Director General of MAN, Segun Ajayi-Kadir told Vanguard there are no fewer than 17 bills before the National Assembly (NASS), which is all targeted at imposing more levies on the manufacturing sector in the country.
According to him, at the moment manufacturers pay over 30 different levies to federal, state and local government agencies, which the association believes is full of multiple payments of taxes and levies to the various level of government.
Ajayi-Kadir disclosed that “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.
“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.”
While speaking on the association’s expectations in the new year, the MAN boss stated further that “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.”