Kemi Adeosun announced this at the Presidential Villa after a council meeting chaired by the Vice-President, Yemi Osinbajo.
The Federal Government review of the National Tax policy will see an increase on the Value Added Tax on luxury items like champagne and some luxury items.
The review of the tax policy was announced by the minister of finance, Kemi Adeosun at the Presidential Villa after a council meeting which was chaired by the Vice-President, Yemi Osinbajo.
Adeosun said “What the committee has shown is that we should look at actually increasing VAT on some luxury items. With VAT of five per cent, we have the lowest VAT. While we don’t think VAT should be increased on basic items, if you are going to drink champagne in the United Kingdom, the VAT is 20 per cent; so, why should it be five per cent in Nigeria?
“So, they have made recommendations that we should pull out some luxury items and increase VAT on those items immediately. And I think that is a very valid and sensible suggestion, which we are going to talk to the National Assembly about to see how we can implement it.
“But as far as basic goods are concerned, no. I believe it is only fair that when you consume luxury goods, you should pay a little bit more. The National Assembly will decide the percentage.”
According to Punch, she added that “The objectives of the revised policy included to guide the operation and review of the tax system; provide the basis for future tax legislation and administration; provide clarity on the roles and responsibilities of stakeholders; and standard benchmark on which they would be held accountable.”
The minister also told newsmen that the enforcement of the revised policy will start immediately, adding that the National Assembly will also be required to help in changing the laws in-line with the recent policy.
The Goodluck Jonathan administration in 2014, listed some items as luxury items and some of them are: alcoholic beverages, private jets, luxury cars based on engine capacity, and yachts.
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