MAN, NACCIMA address impact of Tinubu’s excise duties orders on manufacturers

The Manufacturers Association of Nigeria (MAN) and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) have commended the suspension of the excise duties by President Bola Tinubu.

MAN Director General, Segun Ajayi-Kadir, said the decision has put to rest the anxieties of manufacturers in the affected sectors.

Recall that Tinubu signed Executive Orders to ease the tax burden on businesses, suspending the five per cent Excise Tax on telecommunication services as well as the Excise Duties escalation on locally manufactured products.

Also, the President ordered the suspension of the newly introduced Green Tax by way of Excise Tax on Single-Use Plastics, including plastic containers and bottles. In addition, Tinubu ordered the suspension of the Import Tax Adjustment levy on certain vehicles.

According to reports on Friday, while addressing the executive orders, Ajayi-Kadir said: “The suspension of the obnoxious aspects of the 2023 FPM, which arbitrarily imposed an additional tax burden on the manufacturing sector, is a welcome development and has removed a looming clog on its operations and productivity.

“Manufacturers in the affected sector are pleased and we can now reconnect with our projections and plans made at the beginning of the year.

“We expect that the Customs Service will now stand down the requirements for compliance with the excise escalation and the registration for the green tax.”

Also, commenting on the suspension, the National President, NACCIMA, Dele Oye, said the decision was a welcome development as the lack of clarity on the tax changes had caused confusion.

“We appreciate the administration’s commitment to ensuring that Nigerian businesses are not unduly burdened by unfavourable policies.

“We note that the tax changes were intended to raise revenue while addressing important public health and environmental concerns. However, the lack of adequate notice and clarity on the implementation of the changes has resulted in significant challenges for affected businesses, including rising costs, falling margins and capacity underutilization.

“We commend the decision by President Bola Ahmed Tinubu to sign executive orders deferring the commencement of the tax changes as contained in the Finance Act and Customs, Excise Tariff (Variation) Amendment Order.

“We also support the suspension of the 5% Excise Tax on telecommunication services, the Excise Duties escalation on locally manufactured products, the Green Tax on Single Use Plastics, including plastic containers and bottles, and the Import Tax Adjustment levy on certain vehicles,” Oye said.

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