The Manufacturers Association of Nigeria (MAN) engaged the Presidential Committee on Fiscal Policy and Tax Reforms yesterday to explain benefits and address concerns over new tax laws.
The engagement, held in Lagos, aimed to clarify misconceptions surrounding implementation and implications for manufacturers across different sectors.
The forum, with the theme ‘From Legislative Assembly to Factory Floor,’ focused on how the new tax laws affect Nigerian manufacturers’ operations.
Committee chairman, Mr Taiwo Oyedele, said the reforms were designed to promote equity, competitiveness and simplicity within Nigeria’s fiscal framework.
Oyedele said manufacturers would benefit from input VAT claims on assets and services, revised income bands, exemption thresholds, reliefs and allowances.
“Other measures include a tax ombudsman and withholding tax exemptions for manufacturers and small businesses,” he said.
He said the Economic Development Incentive Scheme prioritised agriculture, food production, energy, mining, health, textiles and utility projects.
“Others include ICT, creative industries, chemicals, building materials, steel, transportation, machinery and environmental services,” Oyedele added.
Oyedele said VAT exemptions covered locally manufactured sanitary towels, assistive devices and disability-related products.
“Zero-rated supplies include fertilisers, agricultural chemicals, veterinary medicines and animal feeds,” he said.
He noted VAT on petroleum products, renewable energy equipment, CNG and LPG might be suspended by the finance minister’s order.
Oyedele said input VAT deductions would apply only to taxable supplies, while non-taxable portions would remain non-deductible.
He added that research and development expenses were deductible, capped at five per cent of annual turnover.
Oyedele acknowledged manufacturers’ concerns over multiple taxes, high burdens and VAT compliance challenges.
“Taxing poverty and multiple levies distorted the system. These reforms aim to fix that and support manufacturing,” he said.
He urged manufacturers to keep proper records and rely on credible information to benefit from the reforms.
MAN Director-General, Mr Segun Ajayi-Kadir, pledged continued engagement with government to ensure manufacturing sector growth and sustainability.