A survey by the Manufacturers Association of Nigeria (MAN) has shown that local manufacturers are paying over 30 different taxes, levies and fees to agencies of the Federal, state and local governments.
Consequently, these multiple taxes and levies according to MAN’s survey have severely depressed production in the country’s manufacturing sector.
According to the report, many manufacturers operating in the country’s industrial sector are still groaning under growing multiple levies being charged by government agencies.
The report revealed that currently, the SMEs are losing about nine per cent of their total income yearly to multiple agencies, which runs into billions of naira following the over 30 different taxes, levies and fees to these agencies.
Reacting to the report, Director-General of MAN, Segun Ajayi-Kadir explained that there is the need to streamline the observed multiplicity of taxes and ensure that only approved taxes/levies/fees are charged by these agencies of government.
Moreover, the MAN director-general added that government should begin to consider reducing the various tax rates which have been the global order in recent times to encourage investment, particularly into the manufacturing sector.
“On the multiple taxes/levies, majority of MAN CEOs interviewed (89 per cent) agreed that multiple taxes and levies depress production in the manufacturing sector. Record shows that manufacturers pay over 30 different taxes, levies and fees to agencies of the Federal, state and local governments on account of increased revenue target. As a result, there is the need to streamline the observed multiplicity of taxes and ensure that only approved taxes/levies/fees are charged.
Government should begin to consider reducing the various tax rates which has been the global order in recent times to encourage investment, particularly into the manufacturing sector,” the MAN survey stated.
Speaking further on operating environment performance, the MAN boss explained that majority of local manufacturers (88 per cent) agreed that multiple/over-regulation by agencies of government depress productivity in the manufacturing sector.”