Manufacturers have paid N403.2bn tax to the Federal Government in the last one year, despite the current economic crisis,
The data from the Company Income Tax reports published by the National Bureau of Statistics showed a significant spike in the tax remitted by manufacturing firms between October 2021 and 2022.
For example, whereas manufacturers paid N89.6bn tax between October 2021 and March 2022, the figure grew to N313.6bn between April and September 2022, representing a 249.8 per cent increase.
In terms of sectoral contributions, the top three largest shares within the period in the review were manufacturing, information and communication and financial and insurance.
In a statement released recently, the organised private sector, which comprises the Manufacturers Association of Nigeria; Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture; National Association of Small-Scale Industrialists; National Association of Small and Medium Enterprises; and Nigeria Employers’ Consultative Association said it would resist any further attempt by the Federal Government to tax the production sector.
According to the statement, the OPSN is aware of the ongoing plan of the Federal Government through the Tariff Technical Committee of the Federal Ministry of Finance, Budget and National Planning to increase Excise on Tobacco, Spirits, Alcoholic and Nonalcoholic beverages.
The proposed move, it said, if implemented, would amount to a departure from the recently established roadmap set out in the 2022 Fiscal Policy Measures and Tariffs Amendments, which covers 2022-2024.
The statement partly read, “It is our strong opinion that a move to hike Excise rates in an unsustainable manner could cause Government revenue from the industry to significantly plunge.”
It warned that an unsustainable excise regime would ultimately lead to loss of investment and investors’ confidence, negative pricing trends, decreased product quality, unemployment, promotion of illicit trade, among others.
Speaking exclusively with the Director-General of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, Olusola Obadimu said that the inordinate taxation of the production sector would have grave consequences on the economy should the government fail to back-pedal on its recourse to always introducing new taxes when there is a need to shore up revenue.
He said, “It is not the private sector’s fault that oil is being stolen. It is not our fault. Must the shortfall in revenue now be made up by the private sector? We need to balance these things. If you run everybody out. Who is going to employ?”