The Manufacturers Association of Nigeria (MAN) has commended President Bola Tinubu on the four Executive Orders issued to suspend implementation of tax increments on some sector’s of the economy, noting the move has dampened the anxieties of manufacturers in the affected sectors.
Director General, MAN, Segun Ajayi-Kadir, in a statement, said the move is in line with the trend of positive policy initiatives of the Tinubu administration.
He asserted that the pursuit of tax increments as enunciated in the 2023 Fiscal Policy Measures (FPM) initiated by the previous administration was inimical to the growth of the manufacturing sector.
Recall that Tinubu had, on Thursday, signed four Executive Orders, which include the suspension of the five per cent Excise Tax on telecommunication services as well as the Excise Duty escalation on locally manufactured products.
He also suspended the 2023 FPM deferring the date of its commencement from 28th May, 2023 to 1st of September, 2023.
Reacting to the development, Ajayi-Kadir stated: “It is worthy of commendation that the President Tinubu took due and far-sighted notice and consideration of the concerns.
“In keeping with the trend of positive policy initiatives that we have seen with his administration, the four executive orders released earlier today have put paid to the anxieties of manufacturers in the affected sectors in particular and operators in the expansive value chain in general. “The suspension of the obnoxious aspects of the 2023 FPM, which arbitrarily imposed an additional tax burden on the manufacturing sector, is a welcome development and has removed a looming clog on its operations and productivity. “Manufacturers in the affected sector are pleased and we can now reconnect with our projections and plans made at the beginning of the year.
“We expect that the Customs Service will now stand down the requirements for compliance with the excise escalation and the registration for the green tax.”
He said MAN will continue to value fruitful dialogue and engagement with the government, with a view to improving the manufacturing environment in particular and the economy in general.
“We look forward to further engagements that will give fillip to the new policy measures President Tinubu has enunciated, so that the challenges that would emerge could be effectively mitigated. For instance, one can see the possibility of inadequacy of forex and a lot of pragmatism is needed to ensure a massive inflow and strategic release.
“While realising that the government needs funds, it is advisable that it focuses on expanding the tax base by developing a strategic framework that will bring a substantial number of taxable individuals and businesses that are not in the tax net into the fold.