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Economy: Govt should tax luxurious items, mansions

EVEN with the economic situation in the country, it shouldn’t surprise anyone that Nigerians are still buying costly luxurious items like handbags, wristwatches, sunglasses, among others. The people who opt for these items see it as a ‘class thing,’ but it is high time government started imposing high tax regime on such items so as to discourage Nigerians from buying them, while encouraging locally produced items.

While the country is suffering economically, some people can still afford to buy vehicles worth millions of naira. Although it is unfair to deny those who work hard from enjoying the benefits of their hard work, this is what the current situation demands.

Mansion tax is another way the government can generate revenue in the country. Several mansions are scattered all over the country, with a single person owning properties in several cities across the country. A wealthy individual can have mansions in Abuja, Lagos and his village. It is, therefore, necessary that the government tax these mansions by their financial values.

However, while the government increases taxes on these luxurious items, I hope import taxes on food items, particularly rice, can be reduced so that Nigerians won’t find it difficult buying food.

Some agricultural experts may feel that flooding the country with rice will not encourage local production, but the truth is that our local production cannot meet with demand, and that it why it needs to be supported with imports.

So the essence of this letter is for the government to increase the tax on unnecessary things like luxurious items, which can be produced locally, while reducing it on food imports.

 

  • Folusola Bello,

Surulere, Lagos.