The Manufacturers Association of Nigeria (MAN) supports proposed reforms to free trade zones (FTZs), promoting equitable tax treatment.
MAN’s Director General, Segun Ajayi-Kadir, stated that the changes would ensure fair tax competition between FTZs and customs territory companies.
“The reform ensures equitable tax treatment for companies operating in both zones, supporting fair competition and protecting Nigeria’s tax base.”
Ajayi-Kadir emphasized that FTZ-licensed entities would receive similar incentives for sales into customs territory, creating a win-win outcome.
He noted that FTZs were initially designed to promote manufacturing for export, requiring reforms to correct tax misinterpretations.
Sections 8 and 18 of existing regulations have been misunderstood, granting unintended tax exemptions for sales into customs territory.
Ajayi-Kadir clarified that Section 18 permits sales but doesn’t exempt such transactions from taxes, addressing regulatory confusion effectively.
“The tax reform bill ensures sales into customs territory attract VAT, import duties, and CIT, enabling fair tax obligations.”
Taiwo Oyedele, Chair of the Presidential Committee on Fiscal Policies, revealed the reform plan during an economic zones conference.
MAN believes the proposed reforms will enhance competitiveness, ensuring all businesses operate under fair and transparent taxation regulations.
