LAGOS – Some financial experts on Tuesday expressed divergent views on the Federal Government’s plans to tax luxury goods nationwide.
The former President of the West African Tax Institute, Mr Kunle Quadri, told the News Agency of Nigeria (NAN) that the proposed tax would boost government’s internally generated revenue.
“Luxury tax is a must, if government is to meet the increasing demands of the citizens.
“Luxury tax is another tool of taxation that is often used to take from the rich and meet the needs of the majority of the society which is often the lower class,” Quadri said.
An entrepreneur, Mr Augustine Ugwu, described the tax proposal as another obnoxious tax policy.
He said the poor management of the nation’s already huge tax resources made the plan anti-people and a new framework to defraud Nigerians.
“What does an average Nigerian own that will make government to increase their tax, in spite of the poverty rate and poor remunerations?
“If government is demanding more funds through tax, they should cut down on their spending, especially among the political class,” he said.
The Chief Executive Officer, Corac Nig Ltd., Mr Ifeanyichukwu Eze, said that Nigerians would only appreciate government’s moves if they gave an account of how the previous taxes were used.
He urged the Federal Government to provide leadership by scaling down the remunerations of the political class on frivolous spendings and waste.
“This policy should commence with the olitical class and their associates before taking it to ordinary Nigerians.
“If government reneges in providing leadership, the proposed policy should remain a proposal because of its anti-people postures,” he said.
NAN recalls that the Director-General of the Debt Management Office, Dr Abraham Nwankwo, recently suggested the introduction of luxury taxes in the country.
He said that the suggestion was based on the need to leverage the Federal Government’s purse and address the challenges of unemployment. (NAN)
