Taxation: Anambra, Lagos most hostile to manufacturers

The Manufacturers Association of Nigeria, MAN, has identified Rivers, Anambra and Lagos States as some of the most unfriendly areas in the country in terms of excessive taxation.

MAN made this known in a 96-page report it submitted to the National Economic Council, NEC, on the business environment in some states and Federal Capital Territory, Abuja, last year.

The document was entitled, ‘’MAN Presentation on Multiple Taxation Across the the country at various levels and its effects on Manufacturing Sector’s Productivity.’’

The report, showed that apart from the 19 taxes or levies approved by the Federal Government as contained in the Taxes and Levies (Approved List for collection) Act Cap T2 LFN, 2004, there were multiple taxation on investors or entrepreneurs in 17 states of the country.

It stated that manufacturers pay 44 additional taxes or levies in Lagos State, just as 59 additional taxes/ levies were paid by them in Anambra State.

According to MAN, 54 additional taxes or levies were paid in Rivers State while manufacturers paid a total of 97 taxes or levies in the state.

However, in Edo State, manufacturers pay altogether, 16 taxes and levies while 20 different taxes and levies were paid in Delta State.

In Kaduna, manufacturers pay altogether, ‘’22 approved and other charges,’’ with the local governments imposing nine additional taxes/ levies.

In Kogi, the state government collect 18 taxes and levies while the local governments imposed five other multiple taxes or levies on entrepreneurs.

In some of the unfriendly states identified by MAN, the state governments, local governments and development centres task entrepreneurs same taxes or levies they had paid to the Federal Government, even when the levies or taxes were on the exclusive list.

‘’In addition to the taxes paid/payable to the local governments under the Act 2004, a total of 24 additional taxes and levies are collected by the local governments in Lagos State…,’ the report stated.

Under the harsh tax environment, the federal, state and local governments collect multiple taxes/levies on seven items respectively, while six other forms of taxes were jointly collected by both the federal and Lagos State governments separately. Furthermore, the Lagos State and its local governments collect 32 other multiple taxes from investors apart from those paid to both federal and the state governments.

Apart from the 19 taxable items in the 2004 Act, 11 other forms of taxes were also said to have been introduced by the Anambra State government, while 39 other forms of double taxation were collected by the local governments in the state.

‘’In addition to the taxes paid/ payable to local governments under the Act 2004, a total of 36 other taxes and levies are collected by the local governments in Anambra State,’’ it added stating further that some of the levies included, ‘’ reform and conveyance permit, route identification, unified council emblem, loading and off-loading permit, oil and gas sticker, environmental pollution , mobilization fee; community fee and gate way permit, among others.

In both Anambra and Lagos States, residents who go to the markets to buy food items pay land taxes before they were allowed to load their food items into vehicles in the motor parks.

However, in Enugu State, where manufacturers pay 23 additional taxes and levies, the manufacturers identified only six forms of multiple taxations by both the the state and local governments. They include property rent/ground rent tax, environmental levy/ Effluent tax and Sanitation rate/ refuse disposal levy.