Despite the controversies surrounding the Tax Reform Bills currently before the National Assembly, the Manufacturers Association of Nigeria (MAN), has described it as the boldest decision ever taken by the administration of President Bola Tinubu meant to ease the plight of the common man and promoting businesses to thrive in Nigeria.
MAN said it is keenly working in conjunction with other members of the Organised Private Sector (OPS) to make sure the National Assembly urgently passes the Tax Reform Bills this first quarter (Q1) of 2025 as the Presidential Committee on Tax Policy and Fiscal Reforms widely consulted them and so the tax bill has its backing 100 per cent.
MAN said the tax reforms are meant to rescue the manufacturing sector from its past doldrums, especially in the areas of continuing payment of 60-120 different taxes, levies and fees to the tiers of government, which contributes to manufacturers’ N1.4 trillion unsold goods, among other expenses attributable to Federal Government’s lack of fiscal policy direction.
This, it noted, has led to non-competitiveness of Nigerian products in neighbouring countries, adding that the bills would also lay to rest another fresh 40 tax bills in the National Assembly targeting profits of local manufacturers and businesses in the country.
Director-General of MAN, Mr Segun Ajayi-Kadir, disclosed this during an interview with New Telegraph in Lagos on the position of MAN concerning the controversial Tax Reform Bills, which he described as a lifeline for local manufacturers.
The MAN DG said: “I would like to join those who have commented earlier about the tax reform, that is, the four tax bills that are before the National Assembly currently.
We all agreed that it’s necessary for us to reform for a better future Nigeria. “Just the way it is giving relief to the private citizens of Nigeria, it is also giving relief to businesses.
And I think that is why earlier on we made it clear that manufacturers stand fully behind the tax reform bills. Apart from the ease of doing business, it also affects the cost of doing business. “An average manufacturers pay between 60-120 different taxes, levies and fees.
In some cases, they can’t even differentiate between what tax they applied for by tiers of government; the Federal Government, states and local governments, and quite importantly, more state actors. So, we are buffeted from so many angles by these tiers of government.
“So when you have a reform that tries to streamline all of these and made it definite, at what you are expected to pay, even from the beginning of the year, it helps your planning, it helps your predictability, you are able to make up your mind how to run your business and what to expect right from the starting of a New Year.
“And it is one of the most significant things, positive measures that people have seen in this tax reform. If you ask me, I think many people talked about the boldness of Mr President in this administration.
I think the most bold move he has made since he became President is actually allowing this tax reform to come to stay, because it affects everybody in the country in one way or the other.
It is one way to address the elites who have been known to be historically benefiting from the country’s economic activities to give back to those who are vulnerable in the society.
“It is a way of demonstrating that you guys we know that you are operate in a difficult environment; we know that you have been disadvantaged in the scheme of things.
