ABUJA, Nigeria (VOICE OF NAIJA)-The Manufacturers Association of Nigeria (MAN) on Thursday met with the Presidential Committee on Fiscal Policy and Tax Reforms to outline the benefits of the new tax laws and respond to concerns raised by stakeholders.
The meeting, which took place in Lagos, sought to clear misconceptions about the implementation process and the implications of the reforms for manufacturers across various sectors.
The forum, themed ‘From Legislative Assembly to Factory Floor’, examined the impact of the new tax laws on the operations of Nigerian manufacturers.
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Chairman of the committee, Mr Taiwo Oyedele, explained that the reforms were intended to foster fairness, competitiveness and simplicity within Nigeria’s fiscal system.
Oyedele noted that manufacturers would gain from input VAT claims on assets and services, adjusted income bands, exemption thresholds, as well as various reliefs and allowances.
“Other measures include a tax ombudsman and withholding tax exemptions for manufacturers and small businesses,” he said.
He stated that the Economic Development Incentive Scheme gives priority to agriculture, food production, energy, mining, health, textiles and utility projects.
“Others include ICT, creative industries, chemicals, building materials, steel, transportation, machinery and environmental services,” Oyedele added.
According to him, VAT exemptions extend to locally produced sanitary towels, assistive devices and disability-related products.
“Zero-rated supplies include fertilisers, agricultural chemicals, veterinary medicines and animal feeds,” he said.
He further disclosed that VAT on petroleum products, renewable energy equipment, CNG and LPG could be suspended through an order by the finance minister.
Oyedele clarified that input VAT deductions would be limited to taxable supplies, while non-taxable portions would remain non-deductible.
He added that research and development expenses would be deductible, subject to a cap of five per cent of annual turnover.
Oyedele acknowledged manufacturers’ worries over multiple taxation, heavy tax burdens and challenges associated with VAT compliance.
“Taxing poverty and multiple levies distorted the system. These reforms aim to fix that and support manufacturing,” he said.
Other concerns raised included VAT compliance difficulties, taxation of raw materials, subnational tax practices, removal of income tax exemptions for exporters and inconsistencies in tax laws.
In response, Oyedele reaffirmed the Federal Government’s acknowledgement of manufacturing as a vital engine for job creation, export expansion and overall economic growth.
He said the government’s broader reform agenda, including tax reforms, was expected to deliver a significant positive impact on the manufacturing sector.
He encouraged manufacturers to maintain proper records and rely on accurate information in order to fully benefit from the reforms.
“Manufacturers must keep proper records to understand what they can claim and position themselves to take advantage of the opportunities embedded in the tax reforms.
“I want you to know that the government is committed to addressing tax issues in the country,” he said.
In his remarks, the Director-General of MAN, Mr Segun Ajayi-Kadir, praised manufacturers for openly expressing their concerns and clearly stating their expectations regarding the effects of the tax reforms on the sector.
He assured of continued engagement with the government to promote the growth and sustainability of the manufacturing industry.
(NAN)