They said the situation has made it impossible to operate, urging the government to lower the rate to 20% or less.
The Pharmaceutical manufacturers who spoke at the 13th Annual Symposium and Award Ceremony, organised by the Health Writers Association of Nigeria, HEWAN, in Lagos, noted that no company could function on this percentage, urging the federal government to lower the MPR to 20 percent or less. While the federal government of Nigeria, through the Central Bank of Nigeria has steadily raised the MPR to reduce the high rate of inflation, this is no longer sustainable, Adeosun said, even as he urged the government to focus on growth rather than inflation.
“However, after trying this for a year, and inflation is still high; the lending rate is also high, it is time to switch gear. When you borrow money at an interest rate of about 38 percent to import drugs into the country, coupled with the high cost of fuel/diesel, clearing cost, import duties and levy duties , no business can survive.
Adeosun however urged the government to chase growth and leave inflation alone, adding that, “Reduce MPR to enable commercial lending rate crash to single digit from the present over 30 percent thereby stimulating economic growth. | recommend a managed float of the currency. The current N1, 500.00 to 1 USD exchange rate is not sustainable in the long term.”
“In addition, small tax payer with businesses with annual turnover of less than N1billion should be given Tax Holiday for one year. Medium to large tax payers should have corporate income tax reduced from 30 per cent to 20 per cent to help cushion the shock of the operating environment. Import duty, import levy should be deleted to enhance the survival of the pharmaceutical sector.
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