Private jet owners to pay N7.9 billion luxury tax as 1st/Business class tickets attract N15,000 surcharge

onnaedo

July 1, 2015 7:17 PM

In view of increasing foreign travels by Nigerians, all first class and business class tickets to overseas’ destinations would attract a flat rate of N15, 000 each as surcharge.

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Hand over some of that cash boys!

That's what the Nigerian government is telling owners of private jets in the country as the government hopes to make N38 billion in taxes from the league of private jet owners.

The Federal Government has reportedly come up with a newly introduced luxury tax to compel such high-net-worth individuals pay a little of the millions and billions spent on the 'sky toys' into government coffers.

Nigerian private jet owners have reportedly spent more than N1.5 trillion in foreign exchange to purchase their jets.

However with the recent introduction of the luxury tax by the Federal Ministry of Finance, the Federal Government is now targeting rich Nigerians who own private jets or fly in premium cabins (first and business classes) to make some money owing to the shortfall in revenue occasioned by the slump in oil prices.

To this end, all local and foreign private jet owners in the country would now pay a yearly surcharge of N3, 200 per kilogramme on the weight of each aircraft, as announced in April.

Also, in view of increasing foreign travels by Nigerians, all first class and business class tickets to overseas’ destinations would attract a flat rate of N15, 000 each as surcharge.

Figures from the Nigerian Civil Aviation Authority(NCAA) show that there are over 190 local and foreign-registered private jets in the country at present, which according to calculations by The Guardian could add up to approximately N7.9 billion per year as luxury tax.

According to some private jet owners who spoke with The Guardian, the luxury tax takes immediate effect as the Federal Inland Revenue Service (FIRS) has already written to parties concerned to notify them.

So what do you make of the move and what effect could this have on the Nigerian tourism industry? Share your thoughts with us in the comment section below.

onnaedo