Oil Crisis: Fed Govt. Announces New Charges On Private Jets & Yachts

Nigerian government has announced new charges on high end products including private jets, yachts and champagnes, in a move the government says will force the rich to pay more to help the country deal with falling oil price. New private jets will henceforth attract a 10% import surcharge, and will generate an estimated N3.7 billion yearly, finance minister, Ngozi Okonjo-Iweala, said Wednesday.

Luxury yachts will attract 39% import surcharge with an estimated annual yield of N1.6 billion, while luxury cars will attract five percent surcharge and a yearly yield of about N2.6 billion.

Ms. Okonjo-Iweala said a three percent charge on champagnes, wines and spirits will yield about N2.3 billion. Also, a mansion in Abuja, worth N300 million and above, will henceforth attract a charge of one percent, referred to as FCT Mansion Tax. The government expects to generate about N360 million from this. The government expects to raise up N10.56 billion from the surcharges.

Meanwhile, the government says it will stick to a proposed $65 per barrel crude oil benchmark despite the continuing decline in the price of oil. Oil price continued to fluctuate on Thursday with Brent crude hovering around $62.21.

While presenting the analysis of the 2015 budget proposal already submitted to the National Assembly for approval Wednesday, Mrs. Okonjo-Iweala said the government decided to keep the oil benchmark based on expert advice.

The benchmark represents a $13 drop from the $78 per barrel (about N142 billion of the federal government budget revenue) originally proposed in the Medium Term Expenditure Framework, MTEF, to the National Assembly.

Source: Premium Times