List of taxable luxury goods out next week
AS part of the cost saving devices announced on Sunday, the Federal Government has curtailed foreign trips of ministers, director-generals and other heads of parastatals in the guise of looking for Foreign Direct Investment or marketing Nigerian abroad.
Presidency source informed the Nigerian Tribune that henceforth, Nigeria embassies and consulars abroad would be made to live up to their responsibilities, by being true representatives in economic, cultural and social matters.
The development, it was gathered, would reduce number of times ministers and other officers would travel abroad for those functions.
“It is not only career officers that ban on foreign trips affected, trips by ministers and DGs will be curtailed too.
“If you look at the quantum of dollars and other foreign currencies the affected officers had spent in their numerous foreign trips in the last 10 years or so, you will be surprised that it is enough to set up a viable industry here in Nigeria.
“We are not stopping foreign trips entirely, what we are saying is that unless such trip is necessary and will add value to Nigeria, no minister or any top ministry officer will be allowed to embark on such a trip.
“Though some of the trips may be to generate foreign direct investment, Nigerian embassies will be made to be more active in this regard,” the source said.
On the proposal to tax luxury goods, Nigerian Tribune learnt that the list, which is already being compiled, would be out latest next month.
Some of the items being compiled for heavy taxation included private jets, yachts, alcohol, beverages, cars, choice properties and a host of others.
In its desire to shore up the country’s revenue base, Nigerian Tribune source said the Federal Government had increased the revenue target of the Federal Inland Revenue Service (FIRS) from the N75 billion 2014 target to N160 billion in 2015.
Though the target is considered to be on the high side, the source disclosed that the FIRS would be given the enablement to meet the desired target.
As part of the response, the Medium Term Expenditure Framework (MTEF) and the 2015 Budget proposal to the National Assembly had also been revised.
The government is now proposing a benchmark of $73 per barrel to the National Assembly, compared to the earlier proposed benchmark of $78.
Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, said though the government had been working hard on several scenarios and contingency plans in readiness for any eventuality, it was important to proceed in a measured manner, based on a complete understanding of the challenges.
“The drop in oil prices is a serious challenge which we must confront as a country. We must be prepared to make sacrifices where necessary.
“But we should also not forget that we retain some important advantages such as a broad economic base driven by the private sector and anchored on sound policies.
“Our strategy is to continue to strengthen the sectors that drive growth, such as agriculture and housing, while reducing waste with a renewed focus on prudence,” the minister said.
Reacting to the development, a constitutional lawyer, Professor Itse Sagay, on Monday, advised the Federal Government to tackle corruption and increase productivity in the non-oil sectors of the nation’s economy.
Sagay gave the advice in a telephone interview with the News Agency of Nigeria (NAN) in Lagos.
Sagay, however, said that the oil glut could be a blessing in disguise for Nigeria, adding that the country must stop its dependence on oil as the major source of its revenue and diversify into other sectors.
“Nigeria is blessed with abundant resources and not just the oil from the Niger-Delta region. But we have become very lazy and have been depending on oil revenue for many years now,” he lamented.
Mr Yinka Farounbi, Chairman, Nigerian Bar Association (NBA), Ikeja branch, also called for the diversification of the economy.
“We have been saying this all along that our dependence on crude oil as the mainstay of our economy should be minimal. There are other natural resources that can enhance the country’s internally generated revenue,” he stressed.
Meanwhile, experts in the economic and oil sectors of the Nigerian economy have thrown their weight behind the proposal to change the oil price benchmark in 2015 budget from $78 per barrel to $73.
They said a higher oil benchmark could widen fiscal deficit and does not reflect true position in the international market.
Managing Director, Nigeria Liquefied Natural Gas (LNG), Mr Babs Omotowa, in an interview with Nigerian Tribune, said the best Nigeria could do was to diversify revenue base.
“When we actually start looking for gas, I believe that we will have about five times more than we have now and that means more revenue for the country,” he stated.
Managing Director, Financial Derivatives Company (FDC) Limited, Mr Bismark Rewane, said the reality on the ground was that oil price fall was already having a negative effect on not only government revenues, but other economic variables.
He said falling oil prices could widen Nigeria’s deficit if a higher benchmark is assumed.
But the Head, Investment Research, Afrinvest West Africa Limited, an economic research and business advisory firm, Mr Ayodeji Ebo, said despite the unfavourable economic situation, the Central Bank of Nigeria (CBN) would continue to defend the naira.
Culled from Tribune
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