FG Raked in N840B as Manufacturing Company Income Tax in 2022

The Federation Government raked in a whopping sum of N840 billion as tax from manufacturing companies in 2022. This is an increase of about 60 percent when compared to N524bn recorded in the previous year.

Data from the National Bureau of Statistics showed that the manufacturing company income tax has been on a significant rise since 2021. 

Investors King could recall that the Federal Government has in recent times introduced a number of tax duties in its bid to raise capital to fund the national budget. 

Prominent among the tax duties is the excise duty of N10 per litre on all non-alcoholic, carbonated and sweetened beverages in the country. This duty was badly received by stakeholders in the manufacturing industry, noting that the industry is already battling with excess tax.

The Manufacturers Association of Nigeria (MAN) had warned that a new tax imposed on carbonated drinks would be counterproductive, stating that the introduction of the excise duty would cause the beverage sub-sector of the food and beverage industry to lose up to N1.9tn in sales revenue between 2022 and 2025 which will have adverse effects on jobs and supply chain businesses.

However, the Minister of Finance, Budget and National Planning, Zainab Ahmed, while making the disclosure said that the new sugar tax was introduced to raise excise duties and revenues for health-related and other critical expenditures in line with the 2022 budget priorities.

Similarly, the increase in manufacturing company income tax also attracted the attention of some economic experts who called for a downward review of the tax paid by the companies in the sector. 

Those who hold the opinion posit that a downward review of tax will have a positive impact on the industry, especially at a time when the exchange rate is increasing and the price of fuel has taken to the roof. 

Investors King earlier reported that three cement manufacturing companies in Nigeria, Dangote, BUA and Lafarge spent N350 billion on fuel in 2022.