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Multiple taxes still pose a challenge to manufacturers across the country and eating into their profit.
Manufacturers have for several years lamented this and the Manufacturers Association of Nigeria (MAN) has again called on the federal government to consider reducing various tax rates hampering investment opportunities, particularly the manufacturing sector of the economy.
The Director-General of MAN, Segun Ajayi-Kadir explained that there is a need to streamline the observed multiplicity of taxes and ensure that only approved taxes/levies/fees are charged by these agencies of government.
To him, quite often, agencies of the Federal, State and Local Authorities regulate the same manufacturing process resulting to man-hour loses, supervisory duplication and multiple regulatory charges.
He stressed that according to a survey conducted by the MAN, shows that local manufacturers are paying over 30 different taxes, levies and fees to agencies of the Federal, State and Local Governments on account of increased revenue target.
He advised that it is expedient that government harmonize the operations, regulatory checklists and mandates agencies of government at all levels to promote the friendlier operating environment.
The Director-General stated that the current operating environment is tough for SMEs amid different levies being paid to the agencies of government, saying that only a reduction of many of them would bring succour to the SMEs sector.
Speaking further, the MAN director-general noted that there is a need to introduce one-stop-shop agencies for the industry in order to bring productivity and growth in investment for the operators.
He said, “I think it is a good policy if they (government) can streamline these agencies. It will good to see one-stop-shop agencies for the SMEs and manufacturing sector in Nigeria because right now, this multiple taxations is obviously affecting most of our members. It is affecting the SMEs because these people are trying to find their rhythm at the moment amid recession.
You know they have to take care of so many bills such as security, lights and other things and ironically, when one agency comes with a levy and even before you finish that, another one comes into you. So it’s quite discouraging because this multiple taxation is killing the SMEs and I just pray that the government should implement this policy that is tailored at reducing them.”
BADEJO ADEMUYIWA has 23 years experience as a Finance Writer, specialising in Insurance and Investigative Reporting.
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