The Manufacturers Association of Nigeria (MAN) has stated that its members are inundated with diverse taxes from federal, state, and local authorities.
MAN lamented 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, with 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.
He appealed to regulatory agencies within the branch, comprising Oyo, Osun, Ondo, and Ekiti States, to harmonize 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.
According to him, the tax net should also be expanded to bring in new taxpayers, which would, in turn, generate more revenue for the government, rather than placing undue pressure on manufacturers.
He said, “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 prioritize the rehabilitation of these areas, considering the high revenue generated, and we are willing to partner with 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.”
Speaking, MAN’s President, Otunba Francis Meshioye, noted that government 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.
While he commended the Oyo, Osun, Ekiti, and Ondo state governments for their support of the manufacturing sector.
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