From Oluseye Ojo, Ibadan
The Manufacturers Association of Nigeria (MAN) has raised the alarm over the burden of multiple taxes, being faced by its members, and appealed to the government at all levels for a relief,. It also called on the government to fix roads in industrial estates and zones in Oyo, Osun, Ondo and Ekiti States.
The alarm was raised during the 40th Annual General Meeting of the Oyo, Osun, Ondo, and Ekiti state branch of MAN, with the theme: “Tax Regime and Effects on Manufacturing: A Strategic Approach for Manufacturers”, held in Ibadan, the Oyo State capital, at the weekend.
According to MAN, manufacturers in the country are being hit with various taxes from federal, state, and local authorities, resulting in increased production costs.
The branch chairman, Lanre Popoola, highlighted the taxes that manufacturers are dealing with, including Capital Income Tax (CIT), Value Added Tax (VAT), Stamp Duties, Personal Income Tax, Withholding Tax, and Industrial Training Fund Tax, among others.
He appealed to regulatory agencies within the branch to harmonise their taxes and levies, urging them to offer discounts and concessions to manufacturers to alleviate the financial burden. He also suggested expanding the tax net to include new taxpayers in order to generate more revenue for the government.
Popoola added that manufacturers have been facing challenges as their vehicles transporting raw materials and goods are frequently harassed by consultants demanding various taxes and levies. He emphasised the unprofessional behaviour of these entities towards company personnel.
“On daily basis, vehicles of members transporting raw materials and manufactured goods are harassed by different consultants who use tout tactics to demand for diverse taxes and levies, many times, these entities behave unprofessional to company personnel,” he said.
Despite the challenges, Popoola commended the resilience and determination of MAN members, who have continued to produce high-quality goods, create jobs, and contribute to the nation’s economy.
He expressed hope that the recommendations of the Presidential Committee on Fiscal Policy and Tax Reforms would lead to an end to multiple and illegal taxation on manufacturers.
He also called on the government to prioritise the rehabilitation of certain roads in industrial areas in Oyo, Osun, Ondo, and Ekiti States, such as Oluyole Estate and its Extension, the Egbeda Industrial Estates, and various road networks.
“In Oyo State, Oluyole Estate and it’s Extension along the Lagos/lbadan expressway, the Egbeda Industrial Estates and several road networks are in deplorable state, we call on government to prioritize rehabilitation of these areas considering the high revenue generated and we are willing to partner with government in exchange for tax holidays.”
“The situation is similar in Osun, Ondo and Ekiti States and using the same template we can achieve more together sufficient and economically stable future,” Popoola said.
MAN’s President, Otunba Francis Meshioye, acknowledged the impact of government reform measures and policies, such as the removal of fuel subsidy, floating of the Naira exchange rate, and an increase in monetary policy rate on manufacturers in the country.
He emphasised the need for state governments to recognise the role of the manufacturing sector in job and wealth creation, as he commended the support of the Oyo, Osun, Ekiti, and Ondo states’ governments for the manufacturing sector.