FG propose tax relief for manufacturers

     

Mrs Kemi Adeosun(MOF)

    The Federal Government through the minister of finance proposes a tax relief for manufacturers inorder to reduce the effect of the economic recession on the aforementioned.

    She said the tax relief was part of measures by the 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.

   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 was one of those badly hit by the economic crisis, the Federal Government would support it with some form of incentives next year.She also 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 a number of 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.