Manufacturers Association of Nigeria (MAN) has said that the new fiscal policy measures (FPMs) outlining the rates of taxes and excise duties for the current year, will likely cause illicit trade, and layoffs in the industry.
As reported by THE CABLE, President Muhammadu Buhari approved the new FPMs, which consist of supplementary protection measures (SPM), revised excise duty rates, and green taxes.
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Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to CanadaMAN director-general, Segun Ajayi-Kadir in a statement on Tuesday said.
“The release of the 2023 fiscal policy measures, just over one month to its expected implementation date and the end of the current administration, sends negative signals to the business community locally and internationally with implications for existing and potential investors,” he said.Information Guide Nigeria
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He further stated, “It is worrisome that the current situation is indicative of inconsistency in government policy, given that industries that are affected by excise tax administration, already made three-year strategic plans based on the agreed calendar as scheduled in the roadmap, including domestic and export sales prices, revenue, and volume projections, tax burden calculations, and others.NYSC Portal
“This, in our opinion, may create credibility issues for the country with existing and potential investors, impacting foreign direct investments (FDI) and the country’s ease of doing business index among other implications.”
He said that based on data from MAN’s members, government is unlikely to earn more revenue from further excise increases due to a significant decline in sales by companies in the sector, “yet, the new policy is likely to fuel illicit trade, industry recession, capacity underutilisation, layoffs”.
THE CABLE reports that Ajayi-Kadir said, “We would like to put on record that the real impact on our members in the industries under the excise regime from the 2022 fiscal policy has been negative.”
“This has created reduced production volumes, increased illicit trade in some of the affected products, erosion of members’ market share and revenue.
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Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to Canada“It also includes inflation and increased security challenges faced around the country and a lot more.
“All these are without regard to the industry’s contribution to the Nigerian economy in the way of significant taxes being paid; taxes include excise, corporate income tax, value added tax (VAT), export revenue in foreign currency and employment of thousands of Nigerians.”JAMB Result
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