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FG To Raise N480bn From Luxury Tax - TELL Magazine

FG To Raise N480bn From Luxury Tax

The Federal Government is set to raise additional revenue of N480bn within the next three years from the implementation of the tax on luxury goods and other austerity measures recently announced by Ngozi Okonjo-Iweala, Minister of Finance.

The minister had on November 16 announced the measures following the persistent drop in the price of crude oil in the international market.

Speaking on Thursday at the fourth edition of the Capital Market Committee, CMC, retreat in Abuja, Okonjo-Iweala listed the areas where the amount would be generated to include taxes on luxury items as well as stoppage of abuses of investment incentives, such as exemptions and waivers.

The luxury goods being targeted for taxation, according to Okonjo-Iweala, include private jets, yachts, expensive vehicles and alcoholic beverages, like champagne.

The minister also said the Federal Government would support the Nigerian Customs Service to block existing leakages and loopholes in order to generate more revenue.

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