The Manufacturers Association of Nigeria has lamented that the Federal Government is placing its N77tn debt burden on the manufacturers in the country.
The association also said its members have been hit with high multiple taxes.
In its first quarter Manufacturers CEO Confidence Index on Monday, the Q1 report titled, ‘Special Focus: MAN at the Receiving End of National Debt Crisis,’ MAN noted that the nation’s tax burden which has “domino effects of escalating public debt on the manufacturing sector are endless.”
The association noted that Nigeria’s rising domestic debt is affecting the survival of private investments in the manufacturing sector.
This, it said, reduces the availability of credit facilities and brings about increased lending rates.
It revealed that the depreciation of the naira is also caused by the servicing of external debts in foreign currencies.
MAN blamed the FG for the unfavourable business climate in the country, citing the “indiscriminate imposition of high and multiple taxes on manufacturers.”
The association cautioned the government not to see the high taxation on the manufacturing sector “as the last resort” to generate revenue in order to service the nation’s debt.
MAN noted that, despite the country’s debt financing, it’s yet to feel its impact on the sector’s numerous challenges.
The association recommended that the FG should:
1. Increase the revenue base by widening the tax net through an enhanced data capture of business operators in the informal sector.
2. Strictly implement the Voluntary Assets and Income Declaration Scheme through the Federal Inland Revenue Service.
3. Further identify and amend the loopholes in the tax laws in order to reduce the leakage of tax revenues.
4. Promote fiscal discipline by reducing the cost of governance and strictly complying with section 41 of the Fiscal Responsibility Act and section 38 (sub-section 2) of the CBN Act.
