…Asks FG not to kill business

Some concerned Nigerian manufacturers have pleaded with the Federal Government not to further stifle the Nigerian business environment with multiple taxes.

They made the appeal against the background of another new government policy to tax plastics used by manufacturers in their production.

Manufacturers who spoke on the matter contended that this would amount to double taxation, worsening companies’ profitability, especially as the federal government was already collecting customs duty on raw materials during clearing at the sea port and exercise duty from beverages factories

One of them said, taxes under different names are levied entrepreneurs at different levels of operation thereby making it difficult for them to break even not to talk of profit.

These manufacturers are complaining about a purported letter from Customs office, indicating a fresh tax which entrepreneurs must pay

The letter which was not sighted by Vanguard reportedly read:  “The revised excise duty rate on alcoholic beverages and tobacco is in line with existing excise regime implementation period and shall take effect from 1stJune 2023 and review upward by 1^st June 2024, also the approval of the duty collection on single use plastics (SUP) at the rate of 10% AD-valorem shall take effect from 1stJune 2023”.

A business who frowned at the purported letter said: “What it means is that we must go to the Customs and pay an amount of money. You cannot go there and not pay money whether you are making profit or not”.

Another entrepreneur said that he already knows that the agency would start visiting his factory.

His words: “We usually receive this kind of notice. And when they come, they will start finding faults with your production and your business.

“Customs will come, NAFDAC (National Agency for Food and Drug Administration and Control) will come and even police.

“At the end of the day, you find yourself spending too much money that affects your production”.

He said last year, he had a running battle with the agencies, to the extent that he could not concentrate on his factory, saying that sometimes, it has become difficult to know which memo is actually from the agencies.

Before now, entrepreneurs have had to complain about such taxes as Value Added Tax (VAT), withholding tax, company income tax, stamp duties and capital gains tax amongst others.

Both manufactures Association of Nigeria (MAN) and the Nigeria Association of Chambers of Commerce, Industry, Mines & Agriculture (NACCIMA) have constantly been calling on the government to improve the operating environment for Nigerian business so that they could thrive, but apparently without much improvement.