Nigerian Luxury Consumer Goods Bill 2019

By Ayo Akinfe

(1) A database will be drawn up to determine what are luxury goods. This will include designer clothing, jewellery, automobiles, footwear and fashion accessories. All such items will be subject to a 20% luxury goods tax at the point of purchase

(2) All private jets will be subject to an annual tax worth 40% of their value

(3) All luxury cars from manufacturers such as Rolls Royce, Porsche, Lamborghini, Ferrari, etc, will be subject to an annual tax worth 10% of their value

(4) This bill will seek to raise $2bn in taxation which will go towards funding education and training. Its goal is to raise the revenue to get every single one of the 13m out-of-school children in Nigeria back into full time education

(5) A 200% tariff will be placed on the importation of branded luxury items from the likes of Luis Vuitton, Gucci, Armani, . Dolce & Gabbana, Yves Saint Laurent, Dior, Hermes, Versace and Chanel

(6) Any of these brand designers who wants to come and open a factory in Nigeria, however, will be granted a two year tax holiday and a year’s free land lease provided they employ a minimum of 500 Nigerians

(7) If any of these brands opens a facility in Nigeria, all elected officials, civil servants and public servants will be obliged to purchase made in Nigeria whenever buying luxury items with public funds

(8) Clergymen who purchase luxury automobiles will be obliged by law to also make corresponding purchases of at least two 40-seater buses for their congregation before their imported cars are cleared

(9) Politicians, monarchs, public officials and senior civil servants such as permanent secretaries are barred from wearing non Made in Nigeria goods at public functions

(10) State governors who attract such manufacturers that generate in excess of $1m a year in revenue for their states, will be given a special bonus in the form of a 5% Allocation Incentive Payment by the federal treasury