- Local Manufacturers Demand Tax Exemption on Raw Materials
To further address the high cost of production and foster growth in the real sector, local manufacturers across the country are demanding Value Added Tax (VAT) exemption on some raw materials from the Federal Inland Revenue Service (FIRS).
The manufacturers said the exemptions will boost growth and support industrial and economic development of the nation. According to them, job creation, technology acquisition and wealth creation are some of the challenges impeding the nation, a positive and strong manufacturing sector will sustain job creation and enhance wage growth.
The President of Manufacturers Association of Nigeria (MAN), Mansur Ahmed, who acknowledged earlier interventions in the exemptions given on biscuit and raw materials for the production of diapers, said similar interventions will boost activities in the sector.
He further said the non-oil sector contributed 54 per cent of the N5.32 trillion revenue generated in 2018, according to FIRS. More than the oil sector contribution to the economy.
“MAN appreciates what FIRS has been doing especially in the last three years; given the fact that revenue from taxes has significantly improved and fast becoming another credible source of our central government’s yearly budget funding, thereby minimizing the vagaries and volatility associated with oil prices at the international market,” he said.
Babatunde Fowler, the FIRS Chairman, assured the manufacturers of the agency’s commitment and support to engage more with the private sector, especially the manufacturing sector, in terms of operation, assessment and development of the sector.
Ahmed, however, recommended that the federal government should not increase the tax rate to better facilitate ease of doing business in the sector.