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REDUCE CURRENT RATE OF TAXES IN NIGERIA TO ENABLE MANUFACTURERS TO COMPETE GLOBALLY, SAYS MAN

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Manufacturers Association of Nigeria (MAN), the umbrella body of Manufacturers in the country has appealed to the Federal, State and the Local governments to reduce to the barest minimum incidences of multiplicity and taxes, levies and fees being charged in order to enable members of the body compete globally in the sector.

The Association observed that with more than 30 different taxes, levies and fees currently in place the nation stands in a disadvantaged position in the wake of Africa Continental Free Trade Area ((AFCFTA), as the corporate tax rate at over 30 per cent, which is above global average at 23.37 per cent and African average at 27.6 per cent.

Some of the taxes are: Company Income Tax, Stamp Duties, Petroleum Profit Tax, Capital Gains Tax, Value Added Tax, Personal Income Tax, Withholding tax, Tertiary Education Tax, 1per cent of parroll contribution to NSITF, 10 per cent of payroll contribution to Pencom, 1 per cent of payroll ITF Levy and National Information Development Levy.
Others are Cabotage levy, Radio and TV Licenses, Police Special Trust Fund Tax Levy, Niger-Delta Development Commission Levy, National Agency for Science and Engineering Infrastructure levy, Land use Charge, Parking Fee, Consumption Tax, Read Tax, Standard Organization of Nigeria Fees, Nigeria Content Development Levy, NAFDAC, Nigeria Health Insurance Authority Contribution and SignageFees.

The body further expressed concern and fear on the stability of the sector as it is aware of about 17 new bills aimed at imposing more levies on Manufacturers presently before the National Assembly.
According to MAN, the plethora of taxes, levies and fees currently being charged have been responsible for the loss of about nine per cent of total yearly income of Small and Medium Enterprises running into billions of Naira.

Commenting on the development, the Director General, MAN, Mr. Segun Ajayi-Kadir said the body has over the years expressed dissatisfaction over continuos increases in taxes, excise duties, VAT and others because we believe that multiple taxes, levies, fees depress production in the manufacturing sector.

According to him, ” 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”.

By Kunle Adeliyi

Global News Network Correspondent
Global News Network Correspondenthttps://globalnewsnetwork.com.ng
GNN is a News blog based in Nigeria to educate, inform and Analyse issues of interest like Politics, Health, Solid Minerals, Energy and Power, Transportation, Defence and Security, Sports and Entertainment to our teeming audience. Stories are generated by seasoned veteran Editors and Journalists. We Say It As It Is.

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