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Senate advises FG to review taxes on luxury goods, look into mining to boost revenue



2020 BUDGET: Senators query proposed VAT increase, others

The Senate on Tuesday advised the Federal Government to consider options in the Mining sector as well as an increment of taxes on luxury goods to boost the revenue needed to fund budgets.

This was a recommendation of the Senate Committee on Finance during a plenary session.

It said, “The Federal Government should harness the full optimal potential of the Federal Ministry of Mines and Steel Development in terms of revenue generation to minimise the level of borrowing.

“The Federal Government should consider reducing the granting waivers and exemptions while ensuring that the Nigerian Customs Service personnel are at all oil terminals for accountability and the Federal Inland Revenue Service should consider increasing tax on luxury goods and services.”

Read also: Okorocha reveals his mission in the Senate

The federal government has been relying on crude oil for its revenue but was taking aback by recession that slashed public finances, weakened its currency and cut spending on capital projects.

The committee also recommended that the 20 per cent operating surplus to be remitted by government-owned enterprises should be deducted at source.

Although global oil process are gaining momentum with Brent crude currently selling at $71 per barrel, the senate considers an investment in other sectors would place the country in a better position to face threats of dwindling global oil prices.

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