This is What is Wrong With Buhari’s Finance Bill – MAN, LCCI
By Anjolaoluwa Abiosun
Despite the proposed gains expected from the Finance Bill signed into law by President Muhammadu Buhari, the new tax law still has some worrying signs.
This is according to two key stakeholders, Muda Yusuf, the Executive Director of Lagos Chamber of Commerce and Industry (LCCI) and Segun Kadiri, the Director General of the Manufacturer’s Association of Nigeria (MAN).
Both voiced their opinions on the Morning Crossfire today on 99.3 Nigerian Info.
According to the MAN DG, “the finance bill should have been a welcomed development.” However, he insists that what is “worrisome” is the “increase in VAT.”
“So as the manufacturer what is your job is not to produce alone, the more important job you have is to sell because if you do not sell you now have to invest in warehouses where you would keep your goods and start reselling at costs you didn’t buy.
“So we are of the opinion and we had expressed it when the bill was been considered in the National Assembly up until when it was sent for President’s assent and now that it’s been accepted we think that it is a negative development,” Kadiri explained.
Mr Kadiri further said the VAT increase was "wrongly timed" and accused the governement of collecting back the increase it is paying in minimum wage. "You (the goverment) have just for instance increased the minimum wage, so what you have done is to take the money back."
On his part, the LCCI Director, insists that “the increase in VAT would put an additional pressure on cost of businesses because the cost environment we have is high in particular for those in production.”
He added: “It’s very high and when you are dealing with the market where you cannot transfer this cost to your consumers then it’s a whole lot of problem for those who are running.”
Despite his concerns, Yusuf commended the Finance Bill for its provisions for SME’s.
“We have these provisions for SME’s, consideration for SME’s and new threshold. That is a plus for the day.”