‎Manufacturers Endorse Tax Reforms, Urge Swift Harmonisation Across States‎

‎The Manufacturers Association of Nigeria (MAN) has thrown its weight behind the Federal Government’s ongoing fiscal policy and tax reforms, calling for accelerated harmonisation of tax regimes across Nigeria’s 36 states to eliminate multiple taxation and enhance the ease of doing business.

‎At a recent hybrid stakeholder engagement hosted by MAN in collaboration with the Presidential Committee on Fiscal Policy and Tax Reforms, industry leaders and policymakers convened to examine the implications of the new tax framework on the manufacturing sector.

‎The session spotlighted a suite of reforms designed to reduce the tax burden on manufacturers, simplify compliance, and stimulate industrial growth. Key highlights include:

‎Key Benefits for Manufacturers

‎- Tax Harmonisation: Elimination of overlapping and multiple taxes to streamline operations and reduce administrative bottlenecks.

‎- Enhanced Incentives: Broader access to input VAT credits and targeted incentives for priority sectors to boost competitiveness.

‎- Operational Efficiency: Encouragement of digital tools and automation to modernise tax compliance, including the removal of outdated requirements like the Certificate of Acceptance for fixed assets.

‎- Fairness and Inclusion: Rationalisation of distortionary incentives and increased tax exemption thresholds to support small businesses.

‎- Business Growth Support: Elimination of withholding tax and turnover tax for manufacturers, improving cash flow and preventing capital erosion.

‎- Taxpayer Rights Protection: Establishment of an independent Office of the Tax Ombud to address grievances and prevent harassment by tax authorities.

‎Areas Requiring Further Action

‎Despite the positive reception, stakeholders flagged several areas needing urgent attention:

‎- Persistently high import tariffs on essential raw materials

‎- Ambiguities in tax treatment and exemptions for export-oriented manufacturers

‎- The need for swift and uniform adoption of tax harmonisation laws across all states to prevent conflicting levies by state and non-state actors

‎The engagement concluded with a dynamic Q&A session, where industry participants voiced concerns and offered suggestions to further refine the reform agenda.

‎This dialogue marks a significant step toward a more transparent, equitable, and growth-oriented tax environment for Nigeria’s manufacturing sector.