The National Bureau of Statistics’ quarterly CIT and VAT data show that, in the first nine months of 2023, the manufacturing industry remitted at least N900.8bn in company income tax and value added tax.
In Q1 2023, manufacturers paid N129.2 billion in VAT and N62.9 billion in CIT. Manufacturers’ VAT payments rose by 17% to N151.7 billion in the second quarter, while CIT grew to N262.7 billion.
During the third quarter of the year, the manufacturing sector paid N138.3 billion in VAT to the Federal Government and remitted N155.7 billion in CIT. This means that in the first nine years, manufacturers paid N419 billion in VAT and N481 billion in CIT, for a total of N900.8 billion in the first nine months of the year.
Subsequent investigation revealed that the industries with the highest tax burden throughout the analyzed period were manufacturing, information and communication technology, and financial services.
The Manufacturer Association of Nigeria has been pleading with the government to investigate the problem of several taxes that have been a burden for its members in various forums in recent years.
The group claims that manufacturers reimburse federal, state, and local government entities for more than thirty various taxes, levies, and fees.
According to MAN, the manufacturing sector—which has historically been the one on the receiving end—has not seen any discernible effects from debt financing on the many issues plaguing its performance in recent years, according to the special emphasis part of its Manufacturers CEOs Confidence Index.
The report read in part, “Infrastructure decadence, forex scarcity, credit crunch and naira depreciation have become bones in the throats of MAN members despite the humongous increase of over 410 per cent in the country’s debt profile in the last eight years.
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