Barely all unforeseeable changes in policy, Nigeria plans to impose taxes on luxury items, including cars, alcohol and some other products consume by the elites in a move to boost revenue and enhance its fiscal policy.
The special tax, which is been contemplated by the government was designed to raise more revenue from non-oil sector and is targeted to generate additional one trillion naira in its quest to plug the ap in the 2018 budget.
it was projected that the government will generate around 2.5 billion naira through the special taxes on insurance of luxury cars and surcharge on other luxury goods.
it was projected that the government will generate around 2.5 billion naira through the special taxes on insurance of luxury cars and surcharge on other luxury goods.
The government has also estimated its expected earning from additional company income taxes from the Voluntary Assets and Income Declaration (VAID) scheme at 350 billion naira.
Government is also expected to rake in 100 billion naira from improvements by the collection of Value Added Tax.
According to the Minister of State for Budget and National Planning, Zainab Ahmad, the government has revised its Medium Term Expenditure Framework (MTEF) and Fiscal Stategy paper (FSP) to reflect the new reality.
She presented the revised copy to the Senate Joint Committee on MTEF.
The government had last month presented the 2018-2020 fiscal plan framework to the senate ahead of the presentation of the 2018 budget to the joint sitting of the National Assembly.
“When the FEC approved the MTEF/FSP, it constituted a committee chaired by the Minister of Finance which was tasked with identifying additional sources of about one trillion naira revenue to cut the 2018 budget deficit and new borrowings.
Ahmad said the outcome of the work of the committee necessitated a revision of the Medium Term Fiscal Framework.
According to the document, the adjustments include “710 billion naira to be generated from the restructuring of government’s equity in all the Joint Venture oil assets; and 320 billion naira additional revenues from revision of terms to improve government take in the production sharing contracts.”
The government had last month presented the 2018-2020 fiscal plan framework to the senate ahead of the presentation of the 2018 budget to the joint sitting of the National Assembly.
“When the FEC approved the MTEF/FSP, it constituted a committee chaired by the Minister of Finance which was tasked with identifying additional sources of about one trillion naira revenue to cut the 2018 budget deficit and new borrowings.
Ahmad said the outcome of the work of the committee necessitated a revision of the Medium Term Fiscal Framework.
According to the document, the adjustments include “710 billion naira to be generated from the restructuring of government’s equity in all the Joint Venture oil assets; and 320 billion naira additional revenues from revision of terms to improve government take in the production sharing contracts.”
The government is also expecting “additional 60 billion from excise duties on cigarettes and alcohol.
The Government is also reviewing the tax profiles of companies that received major payments from it in the last five years.
The review is part of measures aimed at identifying those that have yet to take advantage of the tax amnesty offered under the Voluntary Asset and Income Declaration Scheme.
The government also said it had recruited and trained 2,190 community tax liaison officers under the VAIDS.
The Government is also reviewing the tax profiles of companies that received major payments from it in the last five years.
The review is part of measures aimed at identifying those that have yet to take advantage of the tax amnesty offered under the Voluntary Asset and Income Declaration Scheme.
The government also said it had recruited and trained 2,190 community tax liaison officers under the VAIDS.
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