Manufacturers Ask FG To Remove 7.5% VAT On Diesel
The Manufacturers Association of Nigeria (MAN) has called on the Federal Government to urgently remove the 7.5% Value Added Tax on diesel.
President of MAN, Mansur Ahmed made the call on Thursday at the 25th Annual General Meeting of the Kaduna State branch of the association.
He also asked the government to create a national strategic response to the disruptive impact of the ongoing Russian – Ukraine war on the global supply value chain and its debilitating impact on Nigeria’s economy.
Ahmed stated that such a strategic response will help to identify viable options to ameliorate the negative impact of the disruption, assuage other pain points in the business environment and activate innovative solutions to familiar and emerging macroeconomic and Infrastructure challenges as well as provide a lead way for resilience in the economic ecosystem.
Represented by the chairman of MAN, Bompai branch in Kano State, Sani Saleh, the President said the removal of VAT on diesel should be pending the normalisation of the international supply system as well as resolve the complexity surrounding the seamless implementation of the eligible customer initiative in order to enable manufacturers to take of the advantage of stranded electricity.
Over the years, Nigeria’s manufacturing sector has been acknowledged as the highest contributor to job and wealth creation, skill development and technology transfer.
However, the sector has in recent times been confronted with several challenges ranging from insecurity, inconsistent and unfavourable government policies and global economic crisis among others.
At the 25th joint AGM, the Kaduna branch of the association said the impact of the ongoing Russia-Ukraine war on the country’s economy is leading to the high cost of petroleum products, high cost of raw materials, inconsistent government policies, high regulatory compliance and inadequate infrastructure top the agenda for deliberations.