The Manufacturers Association of Nigeria has urged the government to provide tax relief for manufacturers to help them manage the decline in sales.
The Director General of MAN, Segun Ajayi-Kadir said that manufacturers in the country currently pay between 60 and 120 different taxes, according to The Punch.
He noted that manufacturers are burdened by multiple taxes across all three tiers of government and expressed hope that government action would provide relief to the sector.
“Currently, manufacturers pay anywhere between 60 and 120 different taxes from the three tiers of government. If that is reduced to below 10, it will be a huge relief for us,” Ajayi-Kadir asserted.
Manufacturers are worried about their financial stability, as the value of unsold finished goods inventory rose by 42.93% in the first half of 2024, reaching N1.24 trillion, up from N869.37 billion in 2023.
Ajayi-Kadir expressed optimism about the newly introduced withholding tax regime, calling it a much-needed relief for manufacturers and businesses nationwide.
He emphasized that this development is particularly beneficial for small and medium-scale industries.
Ajayi-Kadir, a member of the Presidential Committee on Fiscal Policy and Tax Reform, noted that the reforms approved by President Bola Tinubu align with the committee’s recommendations.
“I am very proud of the development,” he said, acknowledging the relief tax reforms would bring to the business community.
The new withholding tax regime is part of a broader fiscal policy overhaul aimed at simplifying Nigeria’s complex tax system.
A key highlight of the reform is the exemption of businesses with a turnover of less than N50 million from withholding tax, which Ajayi-Kadir praised as a significant step toward supporting small enterprises.
“If we are going to have businesses which operate at less than N50m turnover freed from the burden of tax, it will be good not only for manufacturers but for Nigerians as well,” he added.
He also noted that the new tax structure would have significant implications for economic growth, as the reform aims to ease the tax burden on manufacturers while allowing the government to collect more appropriate and streamlined taxes.
