Manufacturers blame high cost of doing business on multiplicity of taxes
Manufacturers have identified multiplicity of taxes by the three tiers of government as a major factor that is driving the complexities and high costs of doing business in Nigeria.
They argued that with inadequate power supply, high cost of gas supply and lower consumer purchasing power among others in 2017, manufacturers recorded lower turnover and profit margins during the period.
The employers, under the auspices of Chemical and Non-Metallic Products Employers’ Federation (CANMPEF) stated this at its yearly general meeting over the weekend.
The President of CANMPEF, Devakumar Edwin bemoaned the issues on multiplicity of taxes, which he said had affected their businesses negatively.
He specifically mentioned that the National Environmental Standards and Regulations Enforcement Agency (NESREA) has introduced a permit for imports of chemicals for each consignment, which is a duplication of the charges by National Agency for Food and Drug Administration and Control (NAFDAC) and Standards Organisation of Nigeria (SON).
While appealing to the Federal Government to do all that is possible in alleviating the many plights of the manufacturers for continuous business sustainability and national growth, the CANMPEF president called on government to work closely with the manufacturers to entrench both the manufacturing and agricultural sector to develop export and import substitution in order to improve on the country’s earning.
He said: “Though as we know that the exchange rate has stabilised, there had been quite successes on that, but this is a short term. In the long term, unless the supply of foreign exchange is more than demand, translating the Federal Government’s policy of import substitution to the earnings of foreign exchange is primarily today as exports are very limited. The government has to work with the manufacturing and agricultural sector to make it work.”
Ahead of 2019 general elections, Edwin called for smooth elections to avoid investors pulling out their investments from the country, noting that rough elections would give room for political disturbance and instability of the economy.
Representative of the Lagos State Controller, Federal Ministry of Labour and Employment, an Assistant Director, Labour, Omozeje Charity called for effective use of social dialogue and collective bargaining principles to effective manage the industrial system.
At the meeting, election of officers for the year 2018/2019 was held where the former executives were returned unopposed.
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