𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐫𝐬 𝐁𝐚𝐜𝐤 𝐓𝐚𝐱 𝐑𝐞𝐟𝐨𝐫𝐦𝐬 𝐂𝐚𝐥𝐥 𝐟𝐨𝐫 𝐀𝐜𝐜𝐞𝐥𝐞𝐫𝐚𝐭𝐞𝐝 𝐓𝐚𝐱 𝐇𝐚𝐫𝐦𝐨𝐧𝐢𝐬𝐚𝐭𝐢𝐨𝐧 𝐀𝐜𝐫𝐨𝐬𝐬 𝐒𝐭𝐚𝐭𝐞𝐬

The Manufacturers Association of Nigeria (MAN) recently hosted a hybrid stakeholder engagement with the Presidential Committee on Fiscal Policy and Tax Reforms, focused on the implications of the new tax laws for the manufacturing sector.

The session highlighted key benefits of the reforms aimed at reducing the tax burden on manufacturers and simplifying compliance, including –

Key benefits for manufacturers:

• Harmonization: Elimination of multiple taxes to streamline operations

• Incentives: Expanded input VAT credits and improved incentives for priority sectors

• Efficiency: Promotion of technology adoption and automation to simplify and modernize tax compliance processes and elimination of burdensome compliance requirements such as certificate of acceptance for fixed assets as a precondition for capital allowance.

• Equity & fairness: Rationalization of distortionary incentives and higher tax exemption thresholds for small businesses.

• Business growth: Removal of withholding tax on manufacturers and turnover tax, helping conserve cash flow and avoid taxation of capital.

• Taxpayer protection: Establishment of the Office of Tax Ombud to protect taxpayer rights and curb harassment and exploitation.

Areas identified for clarification and further action include:

• High import tariffs on certain raw materials

• Tax treatment and exemptions for exports

• Accelerated adoption of tax harmonisation laws by all states to complement the national reforms and curb multiple taxation by state and non-state actors

The dialogue also featured a robust Q&A session with industry participants.

Watch the full session here: https://lnkd.in/dxZs5XBg

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