Manufacturers beg FG to remove 7.5% VAT on diesel

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Manufacturers in Nigeria have appealed to the Federal Government to urgently remove the 7.5 per cent Value Added Tax on diesel.

The President of the Manufacturers Association of Nigeria, Engr Mansur Ahmed made the call on behalf of the manufacturers at the 25th Annual General Meeting of the Kaduna State branch of the association.

Ahmed was represented by chairman of MAN, Bompai branch in Kano State, Sani Saleh.

He equally appealed to the FG to create a national strategic response to the disruptive impact of the ongoing Russia– Ukraine war on the global supply value chain and its debilitating impact on the nation’s economy.

Ahmed argued that such a strategic response would assist in identifying viable options to mitigate against 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.

He added that the removal of VAT on diesel should be introduced 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 advantage of stranded electricity.

The manufacturing sector has in recent times been confronted with many challenges ranging from insecurity, inconsistent and unfavourable government policies to global economic crisis among others.

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.

 

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