EXCLUSIVE-FG Cuts 2015 Budget, To Tax Private Jets.
The Nigerian government has introduced austerity
measures to protect the country’s economy from damage as a result of the
continuing decline in oil prices.
Minister of Finance, Dr. Ngozi Okonjo-Iweala has announced that the 2015 budget which was initially estimated at N4.8 trillion has been scaled down to N4.66 trillion.
The
Federal Government has also reviewed the oil benchmark, cutting it from
$78 per barrel to $73 and is expected to use about half of the $4.11
billion in the Excess Crude Account (ECA) to offset current expenditure.
Okonjo-Iweala said:
“We
are not trying to deplete it. But we might go to tap about half of it
or slightly less than half to be able to meet expenditures that are
crystallising at the moment that we need to make.”
The
government will also limit foreign trips made by public officials while
luxury goods and private jets will be taxed to increase the country’s
non-oil revenue base.
“We all know the
definition of luxury goods, we are still compiling the lists and one of
the things we can tax is champagne, alcoholic beverages, jets, luxury
cars- we will look at the engine capacity, and yachts.”
“The
principle is that those who are better off in the society and I hope
they won’t mind will be willing to share a bit more in remitting a
little bit more to the treasury than what they normally do on these
things.”
“The oil price has been falling
quite rapidly for the past weeks. This is due to global factors not
under the control of Nigeria. A number of international factors are
responsible for it, ranging from geo-political to economical. But even
if we cannot control the prices, we can control the way the country is
run. The fall oil prices are not a problem. That is why we are calm
because we feel that this country can manage the situation,” Okonjo-Iweala added.
The
minister however said that, contrary to some suggestions, the FG
wouldn’t print more money to cushion the effects of the drop in oil
prices as this would lead to inflation and be disastrous for the
country.
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