November 24, 2016
Fighting Recession: FG Plans Tax Relief For Manufacturers
Minister of Finance, Kemi Adeosun, dropped the hint on Wednesday in Abuja while responding to questions from journalists at the end of the Federation Account Allocation Committee meeting.
She said the tax relief was part of measures by Federal Government to reduce the negative impact of the foreign exchange crisis on the sector.
Based on the Gross Domestic Product report for the third quarter released by the National Bureau of Statistics, the manufacturing sector’s growth rate was recorded at -2.93 per cent year-on-year.
This is lower by 1.02 percentage points than what was recorded in the second quarter of the year.
The report had blamed the decline in manufacturing activities to the continued drop in the naira to dollar exchange rate, which has made industrial inputs more expensive.
Adeosun said since the sector is one of those badly hit by the economic crisis, Federal Government would support it with some form of incentives next year - 2017.
In addition, she said massive investments in infrastructure would be made to reduce the operating costs of the manufacturing sector.
The minister stated, “It is clear from the figures that the manufacturing sector is the one that is really challenged and the challenge in the sector is clearly that of foreign exchange availability. I think that the sector will benefit from more consistency of the foreign exchange policy.
“On the fiscal side, we are rolling out measures to support the manufacturing sector in terms of tax reliefs and other measures that will allow the balance sheet of the sector to be repaired. They (manufacturers) have taken quite a hit and we will continue to try and support them through it.
“We have a fiscal road map that we will be rolling out and it includes a number of measures around revenue mobilisation, tax reliefs and the fiscal instrument, which will be issued in 2017 to get the economy back to recovery.”