BY JOHNMARK UKOKO
President of the Manufacturers Association of Nigeria (MAN), Mansur Ahmed, has charged members of the association to remain tax compliant following Deloitte review of parts of Finance Act 2021 as it affects the country’s manufacturing sector.
Ahmed enjoined all manufacturing companies in the country to comply with government’s directive on the payment of taxes, as socially responsible corporate entities.
He made the call during MAN-Deloitte webinar on the Finance Act 2021 and the manufacturing sector in Nigeria, adding: “It is important that our members recognise that compliance with the law is one of the key requirements of any responsible citizen.
“The Finance Act 2021 is important to us as manufacturers, as it is to the economy. I believe the basic objective, first of all, is that the government needs revenues, so there was an attempt to widen the revenue base and ensure more effective revenue collection and administration.
“I believe, as you all know, that this is essential to the performance of the government and indeed governance in the country.”
Ahmed also noted that the essence of the webinar was to have Deloitte, as one of the world’s most reputable expert firms on tax matters, to engage MAN and help its members understand the law and how it would affect their operations and more importantly the need for compliance.
He assured that the leadership of MAN would continue to engage the Federal Government for an amendment of any law that might be injurious to the manufacturers, whether big or small.
In his presentation, Bernard Orji, who is the Partner, Core Business Operations at Deloitte noted that the country’s tax laws have become obsolete, and as such the new Finance Act was a welcome development.
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Orji, who was represented by the Partner, Business Tax Unit for Consumers, highlighted some key provisions in the tax laws that are important for manufacturers to pay attention to.
“The N10 per liter excise tax levy on all manufacturers of carbonated drinks and non-alcoholic and sweetened beverages. You need to look at this, as the Nigeria Customs Service needs to designate your Warehouse, as excise factory.
“Another one is the Police Trust Fund Levy, which was passed into law a couple of years ago. However, it couldn’t take effect, because there was no provision as to the administrative agent for collecting the taxes to which account it should be paid and how it be accessed by the Federal Inland Revenue Service (FIRS).
But the issues have been clarified in the Finance Act 2021, which has empowered the FIRS to access collection and enforce an amount due to the Police Trust Fund from the returns that will be filled from January 2022 and from which the Police Trust Fund levy will have to be paid,” he stated.
