"NIGERIAN BILLIONAIRES PRIVATE JETS OWNERS EVADE LUXURY TAX" - FIRS

Despite imposing luxury tax on Private Jets owners in Nigeria to generate more revenue for the government, extremely wealthy individuals who fly around the world in their toys are said to be evading such tax.

The agency in charge of collecting such tax, Federal Inland Revenue Service last week raised the alarm in Abuja revealing that despite the fact that it collected N1.85 trillion as tax from the various sectors of the economy between January and June this year, Private Jets owners in Nigeria have refused to pay tax on their toys. The Acting Chairman of FIRS, Samuel Ogungbesan, made this known before the leadership of the Senate to intimate it on the performance of the agency in the first half of 2015 fiscal year.

Ogungbesan disclosed that N697 billion was generated from Petroleum Profit Tax, N778 billion from Company Tax, while N376 billion was realised from Value Added Tax within the period under review. However, he noted that there was a shortfall in the level of non-oil revenue. According to him, the increase in tax evasion by individuals and corporate bodies was responsible for the low level of non-oil revenue. He noted, for instance, that efforts by the FIRS to get surcharges from owners of private jets and mansions in the country over the years had not yielded the desired results.
He said: “We looked at those who own private jets and thought that yes, you are enjoying facilities and assets Nigerians do not have privilege to enjoying, we will name something we call surcharge on you and of course Customs also was to do some others like furniture surcharge, mansion surcharge, various kind of surcharges.

“But regrettably, we have not been able to administer this. “One, we have challenges. “We raised assessment on about 130 private jet owners because we were made to understand that we have up to that number.”

Recall government last year imposed heavy tax on super rich Nigerians who move around the world in their private jets, who enjoys ostentatious lifestyles to generate into the government purse N38 billion yearly. Reports has it that Nigerian private jet owners have spent more than N1.5 trillion in foreign exchange to purchase these sky “toys.” Some of the common brands and models of the private jets are Bombardier Challenger 604 and 605; Global Express, Global 6000; Hawker Siddley 125 and 900; Gulfstream 450, 550 and 650; Embraer Legacy, Fenum and Citation. A published report by Forbes magazine said that in the last five years, wealthy Nigerians had spent over $6.5 billion acquiring new private jets, which made it the continent’s biggest market for private planes.

Top Private Jets Owners In Nigeria
1. Dr. Mike Adenuga
2. Aliko Dangote
3. Bishop David Oyedepo
4. Pastor E.A Adeboye
5. Sir Arumeni Johnson
6. Hajia Bola Shagaya
7. Mrs Folorunsho Alakija
8. Kola Karim
9. Pastor Ayo Oritsejafor
10. Senator Ali Modu Sheriff                                                                                       
11. Asiwaju Bola Tinubu