The Manufacturers Association of Nigeria (MAN) has expressed its appreciation to President Bola Tinubu for issuing four Executive Orders aimed at suspending the implementation of tax increments in certain sectors of the economy. The move has been welcomed by the manufacturing industry, as it alleviates concerns and anxieties among manufacturers in the affected sectors.
In a statement released by the Director General of MAN, Segun Ajayi-Kadir, he praised the Tinubu administration for its positive policy initiatives and acknowledged that the pursuit of tax increments, as outlined in the 2023 Fiscal Policy Measures (FPM) introduced by the previous administration, was detrimental to the growth of the manufacturing sector.
President Tinubu signed four Executive Orders on Thursday, which included the suspension of the five percent Excise Tax on telecommunication services and the escalation of Excise Duty on locally manufactured products. Additionally, the implementation of the 2023 FPM was deferred from May 28, 2023, to September 1, 2023.
Ajayi-Kadir responded to these developments by stating, “It is worthy of commendation that President Tinubu took note of the concerns and considerations. The four executive orders released earlier today have addressed the anxieties of manufacturers in the affected sectors and the entire value chain. The suspension of the burdensome aspects of the 2023 FPM, which imposed an additional tax burden on the manufacturing sector, is a welcome development and has eliminated a potential obstacle to its operations and productivity. Manufacturers in the affected sectors are pleased and can now resume their projections and plans for the year.”
He further urged the Customs Service to suspend the requirements for compliance with the excise escalation and the registration for the green tax, in line with the executive orders.
Ajayi-Kadir emphasized that MAN remains committed to engaging in fruitful dialogue with the government to enhance the manufacturing environment and contribute to the overall improvement of the economy. He expressed the association’s readiness to support and provide input on the new policy measures introduced by President Tinubu, highlighting the need for pragmatic approaches to address potential challenges such as forex inadequacy.
While acknowledging the government’s need for funds, Ajayi-Kadir advised a focus on expanding the tax base by implementing a strategic framework that would bring a significant number of taxable individuals and businesses into the tax net.
The MAN looks forward to continued engagement with the government to ensure effective mitigation of emerging challenges and to foster a conducive business environment for manufacturers and the broader economy.