Alcoholic drinks and 8 other luxury items FG may increase tax on (SEE LIST) ~ Zeniths Blog

Alcoholic drinks and 8 other luxury items FG may increase tax on (SEE LIST)

– The federal government has approved a new tax policy for Nigeria

– The policy will see the Value Added Tax on luxury items, like champagne, increase from the current 5%

and provide the basis for future tax legislation and administration.

Speaking after the Federal Executive Council (FEC), Kemi Adeosun, the finanace minister said Nigeria is looking at increasing the Value Added Tax (VAT) on some goods, The Cable reports.

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The goods that will be affected by the new tax policy as proposed by the Ministry of Finance are luxury goods. Basic items will not be affected.

Nigerians currently pay 5% VAT. This was one introduced in 1994 by the military government and is one of the lowest in the world.

However, the increase is subject to the approval of the National Assembly.

Adeosun said: “And while we don’t think VAT should be increased on basic items, if you are going to drink champagne, for instance… in the UK you drink champagne the VAT is 20%, so why should it be 5% in Nigeria.

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Below is a list of luxury items in Nigeria that the federal government may increase VAT on

1. Champagne

2. Alcoholic beverages

3. Yachts

4. Private jets

5. Luxury cars based on engine capacity

6. Cosmetics, Fragrances,

7. Designer clothing

8. Gadgets – Mobile phones, Tablets, Iphone, Ipad

9. Watches, Jewelry

Meanwhile, President Muhammadu Buhari’s administration has constituted a Presidential Task Force to urgently consider measures that would ensure a steady flow of produce to the market and reverse recent price increases.

Recall that in November 2014, the former finance minister, Ngozi Okonjo-Iweala, had announced that private jets, yachts, champagne and a host of other the luxury goods would be specially taxed.