The Manufacturers Association of Nigeria, MAN, has seen a great distortion in business growth pattern in Nigeria with multitudes of taxes being collected by a cross section of the tiers of government.
Mr Mallinson Ukatu, Chairman, Non-Metalic Mining, Manufacturers Association of Nigeria (MAN), who reacted to the system reiterated the need for federal government to lift tax burden of the manufacturers, saying this will provide more jobs for unemployed in the country.
He stated this at the 2020 Commerce And Industry Correspondents Association of Nigeria (CICAN) End Of Year Workshop, Titled, “Effects of COVID-19 on the Real Sector / SMEs Financing”.
According to him, Lifting tax burden of the manufacturers will help in creating more employment, thereby lifting jobless youths out of the street.
Speaking on the issues and challenges facing manufacturing in the country, Ukatu maintained that the Nigerian business environment is becoming more hostile and unbeatable.
His words: “The horrible business environment is being compounded by the escalating exchange rates, and forex scarcity coupled with the Covid-19 pandemic.
” One of the most killing is the issue of border closure, which is yet to be appropriately addressed as well as the elimination of payment of multiple taxes which we have been clamouring for.
” For us to come out of recession as a country, the government must remove all multiple taxes levied on manufacturers, and all the ministries that are visiting factories with all forms of charges should be cautioned.
” The government should encourage manufacturers way of formulating policies that is investment friendly and grant tax holiday to manufacturers during this period of general economic hardship if we must come of recession.
” They should think of incentives to manufacturers and not exploiting or punishing them with levies and taxes and make low single digit loans available with less bureaucracy if the country must experience growth”, he added.
Utuka emphasized that manufacturers are not making profit. “This is because of massive infrastructural deficit. We generate power by ourselves and the cost is unbearable. What about road rehabilitation, majority lost our manufactured goods and raw materials to bad roads, our vehicles and vans breakdown on the daily bases as a result of the poor condition of our roads. High cost of natural gas.. How can gas produced in Nigeria being charged in US dollar? “, he queried.