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The Manufacturers Association of Nigeria (MAN) has bemoaned the multiplicity of taxes confronting its members from federal, state and local authorities and called on regulatory agencies to harmonise the taxes and levies.
The association noted that government agencies regulate the same manufacturing processes using similar checklists, resulting in increased production costs.
Speaking in Ibadan at the 40th Annual General Meeting (AGM) of the Oyo, Osun, Ondo and Ekiti state branch of MAN, on the theme: “Tax Regime and Effects on Manufacturing: A Strategic Approach for Manufacturers,” the chairman of the branch, Lanre Popoola, listed various taxes, including Capital Income Tax (CIT), Value Added Tax (VAT), Stamp Duties, Personal Income Tax, Withholding Tax and Industrial Training Fund Tax, among others.
Popoola urged regulatory agencies within the branch to harmonise their taxes and levies, suggesting that discounts and concessions should be given to manufacturing outfits, especially members of the association to reduce the financial burden imposed.
To him, the tax net should also be expanded to bring in new taxpayers, which would, in turn, generate more revenue for government, rather than placing undue pressure on manufacturers who were already paying.
“On a daily basis, vehicles of members transporting raw materials and manufactured goods are harassed by different consultants who use aggressive tactics to demand diverse taxes and levies. Many times, these entities behave unprofessionally towards company personnel.”
He stated that despite the challenges facing his members, they have shown remarkable resilience and determination and will continue to produce high-quality goods, create jobs and contribute to the growth of the nation’s economy.
He, however, lauded the Presidential Committee on Fiscal Policy and Tax Reforms constituted by the Federal Government, saying his members are hopeful that the recommendations of the Committee will lead to the cessation of the menace of multiple and illegal taxation on manufacturers.
“In Oyo State, Oluyole Estate and its Extension along the Lagos/Ibadan expressway, the Egbeda Industrial Estates and several road networks are in a deplorable state. We call on the government to prioritise the rehabilitation of these areas, considering the high revenue generated and we are willing to partner the 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 for a sufficient and economically stable future.”
For his part, MAN’s President, Francis Meshioye, noted that government’s reform measures and policies, such as the removal of fuel subsidies, floating of the Naira exchange rate and an increase in the monetary policy rate, have had a significant effect on manufacturers in the country.
He added that the poor performance of the economy in the past few years makes it imperative for state governments to appreciate the contribution of the manufacturing sector to job and wealth creation.
He commended the Oyo, Osun, Ekiti and Ondo state governments for their support of the manufacturing sector.
