At last, the Federal Government (FG) has signaled the implementation of the austerity measures it announced in the wake of the fall in price of crude oil in the international market.
While announcing the drop in oil price then, Minister of Finance and Co-ordinating Minister of the Economy, Mrs. Ngozi Okonjo-Iweala hinted that the FG will adopt austerity measures that will cushion the effect of the slump in oil price on the economy, especially to ensure that it does not hit ordinary Nigerians hard.
In keeping that promise, during the presentation of the 2015 national budget to the National Assembly (NASS), the minister gave a breakdown on aspects of the luxurious lifestyles of Nigerians that government would slam tax on to support dwindling revenue. She listed that government intends to realize N3.7billion from 10% import surcharge on all new private jets entering the country; N1.6 billion from the imposition of 39% import surcharge on luxury yachts as well as another N2.6 billion to be realized from import surcharge on what government terms "luxury cars".
Okonjo-Iweala explained, somewhat ambiguously, that wealthy Nigerians would pay more for air travel, as those who fly on business and first class tickets would be charged additional monies, but did not immediately state how much exactly. But she was categorical that passengers on economy class, mostly the middle class and poor Nigerians would have no such charges imposed, assuring that salaries of workers will also not be slashed.
Again, the FG said Nigerians who consume expensive champagnes, wines and spirits would have to cough out more to continue enjoying such luxuries in 2015, targeting N2.3billion to be realized from it based on a 30% surcharge on such products.
But what appeared like a bombshell – criticized by some Nigerians – is the imposition of one percent tax on residential mansions in the Federal Capital territory (FCT) on properties valued from N300 million and above. Okonjo-Iweala is targeting N360 million from such taxations annually.
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