By Newsshelve Correspondent.
The Manufacturers Association of Nigeria (MAN) has raised concerns over the planned re-introduction of the 4% Free-on-Board Levy by the Nigeria Customs Service.
The Association believes that this move will have a catastrophic impact on the manufacturing sector and the Nigerian economy.
MAN notes that the levy will add to the existing 1% Comprehensive Import Supervision Scheme (CISS) fee, further increasing the cost of doing business in Nigeria.
The Association argues that this is not the right time for such a move, given the current economic challenges and the need to reduce the cost of doing business.
The Director General of MAN, Segun Ajayi-Kadir, highlights the potential consequences of the levy, including increased costs of production, disruption in supply chains, and reduced competitiveness of Nigerian manufacturers.
He also notes that the levy will exacerbate the already high cost of importation, which has jumped by over 118% in the past year.
MAN argues that the introduction of the levy contradicts the principles of the ongoing Fiscal Policy and Tax Reforms, which aim to eliminate multiplicity of taxes and reduce the tax burden on households and businesses.
The Association urges the Federal Government to direct the Nigeria Customs Service to abandon the plan to re-introduce the 4% Free-on-Board Levy.
MAN warns that the Nigerian manufacturing sector is already burdened beyond its resilience thresholds and that deindustrialization is a real threat.
The planned re-introduction of the 4% Free-on-Board Levy has sparked concerns among manufacturers, who believe that it will have far-reaching consequences for the sector and the economy.
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