Brand Owners Urge FG To Remove 7.5% VAT On Manufacturing Sector
Brand owners under the banner of The Manufacturers Association of Nigeria, MAN, have urged the federal government to remove the 7.5% VAT on the manufacturing sector of the economy.
The association said that the call became necessary pending the normalisation of International Supply System as well as the speedy resolution of the complexity surrounding the seamless implementation of the eligible customer initiative to enable manufacturers to take advantage of the stranded electricity.
According to the association, the sector is the highest contributor to job and wealth creation, skill development, and technology transfer in the country.
The association also urged the government to prioritise the allocation of forex to the nation’s manufacturing sector while the CBN should direct the commercial banks to transparently and diligently process Forex applications by manufacturers.
The President of the association, Engr. Mansur Ahmed made the call at the 35th Annual General meeting of the Imo and Abia states branch of the body held in Owerri, Imo state.
Ahmed stressed the need to improve on the time taken to clear container/cargoes at the nation’s ports, and called on the government to enforce, evaluate and monitor the implementation of Executive Order 003 to ensure compliance by MDAs which he said should be cascaded to the local and state governments levels.
“At the regional and continental levels, we are upscaling our advocacy radar by promoting industrialization and integration in West Africa through the Federation of West African Manufacturers Association, FEWAMA, and we are also facilitating cooperation among African Manufacturers in the promotion and protection of interests of manufacturing industry in Africa through the Pan- African Manufacturers Association (PAMA) while hoping to achieve cross-border value chain and scale production to ensure that those African made products are traded in the continental market”.
The association challenged Imo and Abia state governments to intensity efforts in encouraging investment in manufacturing by facilitating the establishment of industrial parks and granting such incentives as tax holidays to manufacturers to promote industrial expansion and employment generator.
It further called for harmonisation of taxes, removal of the use of discretion, and admission to MAN to serve on Governments’ Boards.
Also speaking at the event, the chairman of the Imo and Abia states branch, Dr. Jude Eluma who spoke on, “Overcoming Infrastructure challenges to boost manufacturing activities in Nigeria” lamented that the increase in diesel and input costs with lack of electricity supply, Forex for the importation of raw materials and machineries amidst insecurity had been the prominent issues bedeviling manufacturers’ functionality in the year under review.
“We need the conscious support of MDAs, both at the states and federal levels to assuage our challenges, restore confidence and enhance ease in doing business in the states. Our state governments should intensity efforts to encourage manufacturers’ investments with the aim of benefiting from the gains of the much talked about African Continental Free Trade Agreement (AFCFTA) as made in Nigeria products can help to drive Nigeria’s economy”.