The Federal Government has proposed to generate additional N1tn non-oil revenue to reduce the deficit and loans in the 2018 budget.
This will include an additional N60bn from duties on cigarettes and alcohol and N2.5bn from “special taxes” on luxury cars.
The details were contained in the briefing note on the revised 2018-2020 Medium Term Expenditure Framework and Fiscal Strategy Paper presented to the National Assembly.
The Minister of State for Budget and National Planning, Zainab Ahmad, presented the revised MTEF and FSP to the Senate Joint Committee on MTEF on November 21, 2017, a copy of which was obtained by The PUNCH
Ahmad had at an interactive session told the Senate committee that some adjustments had been made to the MTEF and FSP earlier presented to the National Assembly.
The minister had said the Federal Executive Council in August 2017 approved the 2018-2020 MTEF/FSP which had been presented to the National Assembly for approval.
She added, “When the FEC approved the MTEF/FSP, it constituted a committee chaired by the Minister of Finance (Mrs. Kemi Adeosun) which was tasked with identifying additional sources of about N1tn revenue to cut the 2018 budget deficit and new borrowings. The outcome of the work of the committee necessitated a revision of the Medium Term Fiscal Framework which also formed the basis of the 2018 budget proposal.”
As contained in the document, the adjustments include “N710bn to be generated from the restructuring of government’s equity in all the Joint Venture oil assets; and N320bn additional revenues from revision of terms to improve government take in the production sharing contracts.”
The Federal Government is also expecting “additional N60bn from excise duties on cigarettes and alcohol.”
Others are N350bn as additional Company Income Taxes expected to result from the Voluntary Assets and Income Declaration Scheme; N100bn from improvements by the FIRS in the collection of Value Added Tax; and N2.5bn from “special taxes on insurance of luxury cars as well as surcharge on luxury goods.”Punch