Business

New Executive Orders have allayed manufacturers’ fears —MAN

The Manufacturers Association of Nigeria (MAN) has described the four new Executive Orders released recently by the Federal Government as bringing a relief to manufacturers in the affected sectors, including operators in the expansive value chain.

The association’s Director-General, Segun Ajayi-Kadir, in a statement issued at the weekend, stated that the suspension of the “obnoxious aspects” of the 2023 Fiscal Policy Measures, which arbitrarily imposed additional tax burden on the manufacturing sector, is a welcome development, since it has removed a looming clog on the sector’s operations and productivity.

Describing the escalation of excise and introduction of new taxes in the 2023 fiscal policy measures by the past government as “disingenuous,” Ajayi argued that such escalation had the potential impact of truncating the business projections of producers and assaulting the purchasing capability of the average Nigerians.

He, therefore, commended the President Bola Tinubu administration for taking consideration of the concerns of the affected manufacturers, as evident in the new Executive Orders.

While calling on the Customs Service to adhere to the orders by suspending the requirements for compliance with the excise escalation and the registration for the green tax, Ajayi expressed the belief that the new executive orders would enable manufacturers in the affected sector reconnect with the projections and plans made at the beginning of the year.

He expressed the association’s readiness to constantly engage the new government, with a view to improving the manufacturing environment in particular and the economy in general.

The MAN’s DG also counselled the government on the need to focus on expanding its tax base by developing a strategic framework that will bring a substantial number of taxable individuals and businesses, not in the tax net, into the fold.

“The last administration had revised upward the excise duty as contained in the 2023 fiscal policy measure without any impact assessment and adequate consultation with stakeholders in the manufacturing sector.

“Some of the added tax burdens in the 2023 fiscal policy measures are the arbitrary introduction of a green tax and escalation of the excise duty on alcoholic beverages, wines and tobacco in violation of subsisting government approved roadmap.

“These clearly contradicted government’s commitment to maintaining policy stability to boost investment and enhancing business confidence in the manufacturing sector. We indicated that the policy is an additional burden too high to bear, as we were also struggling with low patronage, high borrowing cost and huge energy costs in a highly inflationary environment.

“The pursuit of tax increments on already tax-burdened industries is inimical to the growth of the manufacturing sector and not in the overall interest of the citizens who are the ultimate consumers,” he added.

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