The Federal Government is set to generate N38bn from luxury tax which will be imposed on private jet owners and first and business class passengers, according to reports.

The Federal Ministry of Finance had the proposed tax in April saying that all local and foreign private jet owners in the country would pay an annual surcharge of N3,200 per kilogramme on the weight of each aircraft.

First and business class tickets will now also to destinations abroad will now also attract a flat rate of N15,000 each as foreign travel surcharge.

The approximate amount to be paid by all private jet owners in the country is N7.9bn while the premium passengers will pay about N30bn in total, according to Punch.

Minister of Finance, Ngozi Okonjo-Iweala had explained earlier that the richer members of the society would be required to pay luxury tax in order to cushion the effects of the oil price decline on the Nigerian economy.