Nigeria Manufacturers Applaud Tax Reforms, Urge Clarity on Key Issues

The Manufacturers Association of Nigeria (MAN) has welcomed the Federal Government’s latest tax reforms, following a high-level stakeholder engagement with the Presidential Committee on Fiscal Policy and Tax Reforms. 

RoundReports learnt that the hybrid session, held recently, brought together industry leaders and policymakers to examine the implications of the new tax regime on the manufacturing sector.

The dialogue, which featured a robust question-and-answer segment, spotlighted a raft of measures designed to ease the tax burden on manufacturers and streamline compliance processes. 

According to MAN, the reforms are a huge step towards fostering a more business-friendly environment and enhancing industrial competitiveness.

Among the headline benefits outlined were the harmonisation of multiple taxes, a move expected to reduce operational bottlenecks and eliminate overlapping levies that have long plagued manufacturers. 

The reforms also promise expanded input VAT credits and improved incentives for priority sectors, offering a potential boost to investment and productivity.

Efficiency gains are also on the cards, with the government pledging to promote the adoption of technology and automation in tax administration. 

READ ALSO: Troops Foil Suspected Kidnapping Attempt on Taraba Highway

Notably, the removal of the certificate of acceptance for fixed assets as a precondition for capital allowance was hailed as a welcome relief from bureaucratic red tape.

In a bid to promote fairness, the reforms include rationalisation of distortionary incentives and higher tax exemption thresholds for small businesses. 

The removal of withholding tax on manufacturers and turnover tax was also discussed as a measure to conserve cash flow and prevent the taxation of capital, a long-standing concern within the sector.

To safeguard taxpayer rights, the establishment of an independent Office of the Tax Ombud was announced, aimed at curbing harassment and exploitation by tax authorities.

Despite the optimism, stakeholders flagged several areas requiring further clarification and action. 

Chief among these were high import tariffs on essential raw materials, the tax treatment of exports, and the need for accelerated adoption of harmonisation laws across all states to prevent continued multiple taxation by sub-national and non-state actors.

MAN reiterated its commitment to working collaboratively with the government to ensure the reforms translate into tangible benefits for manufacturers and the broader economy.