Manufacturers Association of Nigeria (MAN), on Tuesday admonished the Federal and State governments to as a matter of urgency harmonise multiple taxation at all levels, saying it is the major threats to the growth of their businesses.
The association equally called on the Central Bank of Nigeria (CBN) to give directives to DMBs (Commercial Banks) to reduce interest rates on Industrial Loans, widen the window of Foreign Exchange (FX) to local industries and other loans released as COVID-19 palliatives should be significantly reduced to 1%.
The National president of MAN, Otunba Francis Meshioye and the Chairman of the association for Kwara/ Kogi States branch, Rahman Bioku, stated this at the 9th Annual General Meeting (AGM) of the association in Ilorin, the state capital.
The theme of the AGM is “Nigerian Tax Albatross: Solutions and Reforms”
In his remarks, the National President of MAN, Otunba Francis Meshioye, identified challenges confronting Nigerian manufacturers included “the harassment of manufacturers to pay multiple taxes and the collapse of infrastructure, especially roads leading to members factories.
“We are hopeful that the Kwara State government will effectively address these challenges with a view to improving the operating condition of businesses in Kwara State,” he said.
Meshioye who was represented at the event by the Vice President of MAN in South West Zone, Kamoru Yusuf, added that: ” Esteemed members, we are quite familiar with recent. developments brought about by government reform measures, pronouncements and policies. They include the removal of fuel subsidy, floating of the naira exchange rate and increase in monetary policy rate. In particular, the reversal of the clearly disingenuous escalation of excise rates on some products has made the theme of this AGM, which is “Nigerian Tax Albatross: Solutions and Reforms” apt and timely. It will certainly add to the body of knowledge that will shape the tax ecosystem of Nigeria. ”
The MAN president further stated that “the poor performance of the national economy in the last few years, which the federating states are part of, has remained a source of concern to all of us.
“Therefore, it has made it imperative for state governments that appreciate the contribution of the real sector in job and wealth creation, to institute a more effective and efficient consultative mechanism with the Manufacturers Association of Nigeria (MAN). This is to ensure the sustenance of the existing manufacturing companies and those that are at the verge of collapse under the weight of overwhelming macroeconomic, infrastructural and regulatory challenges.”
Earlier, the chairman of MAN, Kwara and Kogi States branch, Rahaman Bioku, posits that the theme of the event was chosen “to conduct a long overdue assessment of the disharmony, the disarray, the controversies, the confusion, and the increasing conflicts which have unfortunately characterized the public tax regime in Nigeria.”
“These conflicts have set a number of manufacturing companies up against the government because we have had to confront several maladies in the tax space such as multiple and double taxation, illegal taxation, over-taxation, and all sorts of irregularities therein
” our sad reality today is that many industrial establishments have gone under, while the few ones still struggling to operate require monumental support from the government at this difficult time.
“As we endure the bitter pains of subsidy removal, these are our urgent recommendations to the government: All illegal and controversial taxes and levies should be dropped.
All multiple taxes should be harmonized at federal, state and local levels.”
Kayode Alabi, who represented Governor Abdulrahman Abdulrazaq at the event commended MAN for complementing government effort in solving unemployment rate in the state.
He assured that the government will continue to partner with them in moving the state forward.
