Luxury items consumers to pay more tax as nigeria revises national tax policy

The Nigerian government has announced plans to revise its national tax policy, which will lead to an increase in taxes on luxury items. The new policy aims to increase revenue and reduce the country's reliance on oil exports.

According to the Minister of Finance, Budget, and National Planning, Zainab Ahmed, the revised policy will introduce a new tax regime that will target high-end goods and services. The policy is expected to come into effect in 2023.

Some of the luxury items that will be affected by the new tax policy include:

  1. Luxury cars: The policy will introduce a new tax on luxury cars, which will be based on the vehicle's value. Cars valued at over N10 million (approximately $25,000) will be subject to a higher tax rate.
  2. Jewelry and watches: The policy will introduce a new tax on jewelry and watches, which will be based on the item's value. Items valued at over N1 million (approximately $2,500) will be subject to a higher tax rate.
  3. Private jets and yachts: The policy will introduce a new tax on private jets and yachts, which will be based on the vessel's value. Vessels valued at over N500 million (approximately $1.25 million) will be subject to a higher tax rate.
  4. High-end real estate: The policy will introduce a new tax on high-end real estate, which will be based on the property's value. Properties valued at over N50 million (approximately $125,000) will be subject to a higher tax rate.

The new tax policy is expected to generate additional revenue for the government, which will be used to fund infrastructure development and other public projects. The policy is also expected to reduce the country's reliance on oil exports and promote economic diversification.

However, the policy has been met with criticism from some quarters, who argue that it will lead to an increase in the cost of living for ordinary Nigerians. Others have argued that the policy is unfair and will disproportionately affect the wealthy.

Overall, the revised national tax policy is expected to have a significant impact on the Nigerian economy and will be closely watched by investors and consumers alike.