My problem is not because it is locally made, but because the standards are low. How would I be drinking diluted treetop as wine just cos I want to support local manufacturers? To who's detriment is that? If the standard is good, I'd buy.

12inches1:


In Nigeria, we are crazy about foreign things. Even in the U.S, I used Dudu Osun. Think about it this way, if you support local industries they will become more competitive and better. America does not import things like food, sardine, soap etc. They are made here. And they provide jobs and help the economy. The era of importing everything is long gone. Anyone that wants to tap into the huge Nigerian market should come and setup in Nigeria. We are not dumb. Even Donald trump said the same thing about the U.S during his election.

okochaik:
If we ban importations of finished goods or raise high taxes on them, it will make even those chinese companies that produce those goods to come to our country to open their industries and this will help naira and also provide jobs. It will provide jobs for both our raw material dealers and also the company workes. Our government will still rip tax from them. When the finished goods is exported to other African countries it will help our foreign exchange

Bros, that is what it looks like on the surface but that is not the case. The Chinese companies will not come here cos the production cost will be higher here and remember they don't produce only for Nigeria so they will lose.

Every business is out to make profit and the question is why is China the world manufacturing capital? It is because cost of producing in China is cheaper than Europe or America. Why? because the have the infrastructures and labor cost is low unlike America and Europe who have the infrastructure but high labor cost.

In Nigeria our labor cost is low but our infrastructures is non existent. Once we fix our infrastructures that is 24/7 power, road, rail and water transport coupled with our already low labor cost and high population plus sound economic policy, our manufacturing cost will be low and I bet you we will start seeing influx of companies using here as their production base.

As China prospers, their labor cost will continue to rise as their people demand for better wages to raise their living standards to rival that of the western countries. what it means is that at some point, the cost advantage China has over the western countries will diminish and companies will start looking for the next cheap country to manufacture. Right now, Vietnam is working seriously on their infrastructures and will likely become the next China in terms of commerce.
Nigeria should have been the next China but you and I know that our leaders are empty head without any plan for the country.

repogirl:
or open our borders into Niger where cars and other goods can be smuggled in illegally

That is very true oh.
Buhari creates business for his relations up there in Niger Republic.

Billyonaire:


I told you I was busy. There is no point trying to lecture me on what is good for my business and what is bad. I do not think you are qualified to advise me on such issues. I have nothing on my name except may be personal effects. And that is how it is supposed to be. I am not an average Joe you meet. Assets are listed under corporate ownership. All corporate taxes are listed as such as I handle the Payee tax, I do not earn much as an individual. As such personal bankruptcy can not affect my Corporate Entities and Trust.

I do not think it is based on economic growth postulates that Buhari seeks to increase taxes on luxury items from 20 to 70%. That margin is way too high and looks more vindictive than visionary.

I will repeat this and it is true. The chief reason people work damn hard, invest damn hard and study damn hard, is to live luxury lives and enjoy the fruits of their labor. If a thieving politician decides to target your taste for luxury items which fueled the passion for your hardwork, then that sort of government is promoting complacency, discouraging enterprise mindset and extolling the virtues of pauperism.

Do not argue to win, always argue to learn. So far I think you are missing that mark.

Enjoy your day, but think differently next year. I have nothing against a uniform increase in tax to meet needs of a country, but using a standard economic models, countries in recession are encouraged to catalyze consumer spending, increase tax cuts to put money into the pockets of the citizens and introduce social welfarism. But in Nigeria, we are unfortunate to have ignorant people managing the Economy.

Does not make sense to me no more. Just hope we havent gotten to a point of no return.

It's always amusing how people make ridiculous assumptions on Nairaland. You should take some of your own medicine and argue to learn. The world doesn't start and end with Nigeria and how its economy is run. Luxury tax is not a new phenomenon. You should find out from some of the world's richest and top earners. Just earning a lot more than the "average joe" is enough to make you pay higher percentages in tax. Uniform tax, lol, yeah right. Like that's gonna happen.

I real am not interested in how you handle your tax issues, corporate or personal. Just stop making funny comments like laying your staff of to spite the government, especially the Nigerian government. Ain't gon' work.

Yes, I do hope that Nigeria gets its act together in terms of policy formulation and implementation. On that, we can agree.

dabossman:


It's always amusing how people make ridiculous assumptions on Nairaland. You should take some of your own medicine and argue to learn. The world doesn't start and end with Nigeria and how its economy is run. Luxury tax is not a new phenomenon. You should find out from some of the world's richest and top earners. Just earning a lot more than the "average joe" is enough to make you pay higher percentages in tax. Uniform tax, lol, yeah right. Like that's gonna happen.

I real am not interested in how you handle your tax issues, corporate or personal. Just stop making funny comments like laying your staff of to spite the government, especially the Nigerian government. Ain't gon' work.

Yes, I do hope that Nigeria gets its act together in terms of policy formulation and implementation. On that, we can agree.

I have no idea why its difficult for you to evaluate your assertions with facts and statistics. No country imposes 70% taxation on Yatches and SUVs. And to escalate the tax from 20pct to 70pct is more of a punitive measure for luxurious and oppulent living than targeted at economic growth. I do not expect you to agree with me, after all, my knowledge of psychology of mental orders and disorders expounds on the fact that some people dont just get it. Some people are not ready to accept defeat even when their assertions are floored simply because they hate to see their ego deflated.

When government increases taxation, Employers fire to save costs and also to send a statement to the lunatic Presidents who have never made millions or billions from their personal sweat. They just wanna purnish others for their own silly mess.

Why must government increase tax from 20pct to 70pct. Na rich people destroy the economy ? No be their mumu land this economy on recession ? Why must the rich pay for government's foolishness ? And to actually know that these tax money will be looted by these imbeciles in politics is really debilitating.

You do not increase taxation during recession.
You do not increase interest rates during recession.
You do not punish the upper class during recession.

What you do during recession are;
You lower interest rates to single digits.
You allocate funds to Bank of Industry to empower manufacturers and investors to produce locally.
You encourage consumer spending
You engage in infrastructural development and hire lots of casual workers and put money in their pockets to spend our way out of recession.

Why the Bleep do we work so hard to acquire luxury only to be taxed 70%. Buhari did this in the past and the country was grounded. IBB had to rescue us. Now he has started again.

This Xmas, there was no Christmas light in most homes.
Lots of people in Lagos hide in their bedrooms and never traveled cos they could not afford to.
Many houses are vacant cos many tenants are downgraded financially.

Let us stop adoring these crazy politicians, all of them except people like Ambode. I owe no allergiance to no fucking buddy, so dont even think my loyalty is to a politician or a party. I am done with the partisan politics.

erico2k2:

Oga na question I ask you know abi you nor know ?

All i know is Buhari cancel all the contract given to those miscreants..

crisycent:


We won't stop. As a matter of fact by next year, it will be 0bpd!!!

LOL continue jare we are in it together...

rusher14:


It's not locally used I'll admit but it is a correct term.

Not even in Europe

APCmyheart:



All i know is Buhari cancel all the contract given to those miscreants..

So its obvious you don't know who now have the contracts to monitor the pipe lines right ? And you too would deny not knowing who owns the Oil blocks as well ?
Make una get sense small every action has an equal and oposit action. U cancel contracts given to locals and award it to one man from the north who has no clue what do U think would happen . Billions is being looted all in the name of voting xx Money to the military to secure the pipe lines to what avail ?putting thousands out of employment . Let me stop there cos it seems you have no clue about the Creek biz.Enjoy .

Billyonaire:


[s]I have no idea why its difficult for you to evaluate your assertions with facts and statistics. No country imposes 70% taxation on Yatches and SUVs. And to escalate the tax from 20pct to 70pct is more of a punitive measure for luxurious and oppulent living than targeted at economic growth. I do not expect you to agree with me, after all, my knowledge of psychology of mental orders and disorders expounds on the fact that some people dont just get it. Some people are not ready to accept defeat even when their assertions are floored simply because they hate to see their ego deflated.

When government increases taxation,[/s] Employers fire save costs and also to send a statement to the lunatic Presidents [s]who have never made millions or billions from their personal sweat. They just wanna purnish others for their own silly mess.

Why must government increase tax from 20pct to 70pct. Na rich people destroy the economy ? No be their mumu land this economy on recession ? Why must the rich pay for government's foolishness ? And to actually know that these tax money will be looted by these imbeciles in politics is really debilitating.

You do not increase taxation during recession.
You do not increase interest rates during recession.
You do not punish the upper class during recession.

What you do during recession are;
You lower interest rates to single digits.
You allocate funds to Bank of Industry to empower manufacturers and investors to produce locally.
You encourage consumer spending
You engage in infrastructural development and hire lots of casual workers and put money in their pockets to spend our way out of recession.

Why the Bleep do we work so hard to acquire luxury only to be taxed 70%. Buhari did this in the past and the country was grounded. IBB had to rescue us. Now he has started again.

This Xmas, there was no Christmas light in most homes.
Lots of people in Lagos hide in their bedrooms and never traveled cos they could not afford to.
Many houses are vacant cos many tenants are downgraded financially.

Let us stop adoring these crazy politicians, all of them except people like Ambode. I owe no allergiance to no fucking buddy, so dont even think my loyalty is to a politician or a party. I am done with the partisan politics.
[/s]

I wonder why you keep writing these long essays on issues I have not picked an argument with you on. What, you think you are educating me on what should be done in a recession? Have I argued, countered or contested that with you? Where in all my write-up have I said the 70% increase is good or commendable? The only issue I have taken you up with you is the bolded delusion that sacking your staff will send a message to the President or anyone in government because they increased luxury tax. Even if they increase income tax or VAT,and you sack your staff, you'll only be deceiving yourself if you think they are bothered. Sacking them to save cost is another issue. But "making a statement" to govt? Bro please, maybe you haven't been in Nigeria long enough. You'd probably achieve more picketing Aso Rock and NASS with other entrepreneurs of like mind.

Sacking your staff to spite govt will only amount to blinking in the dark.They won't even notice, nor will they care. Mind you, making your loyal staff suffer for something that isn't their fault just to spite a government that doesn't give a rat's ass is quite vindictive on your own part too.Think about it.

Now, it's time to spend quality time with my wife and kids. Good night sir.

Billyonaire:


I have no idea why its difficult for you to evaluate your assertions with facts and statistics. No country imposes 70% taxation on Yatches and SUVs. And to escalate the tax from 20pct to 70pct is more of a punitive measure for luxurious and oppulent living than targeted at economic growth. I do not expect you to agree with me, after all, my knowledge of psychology of mental orders and disorders expounds on the fact that some people dont just get it. Some people are not ready to accept defeat even when their assertions are floored simply because they hate to see their ego deflated.

When government increases taxation, Employers fire to save costs and also to send a statement to the lunatic Presidents who have never made millions or billions from their personal sweat. They just wanna purnish others for their own silly mess.

Why must government increase tax from 20pct to 70pct. Na rich people destroy the economy ? No be their mumu land this economy on recession ? Why must the rich pay for government's foolishness ? And to actually know that these tax money will be looted by these imbeciles in politics is really debilitating.

You do not increase taxation during recession.
You do not increase interest rates during recession.
You do not punish the upper class during recession.

What you do during recession are;
You lower interest rates to single digits.
You allocate funds to Bank of Industry to empower manufacturers and investors to produce locally.
You encourage consumer spending
You engage in infrastructural development and hire lots of casual workers and put money in their pockets to spend our way out of recession.

Why the Bleep do we work so hard to acquire luxury only to be taxed 70%. Buhari did this in the past and the country was grounded. IBB had to rescue us. Now he has started again.

This Xmas, there was no Christmas light in most homes.
Lots of people in Lagos hide in their bedrooms and never traveled cos they could not afford to.
Many houses are vacant cos many tenants are downgraded financially.

Let us stop adoring these crazy politicians, all of them except people like Ambode. I owe no allergiance to no fucking buddy, so dont even think my loyalty is to a politician or a party. I am done with the partisan politics.

Thank you
I even went as low as saying grandma who buys salt at N10 now will have to buy same amount of salt at N70 they still don't get it.where in the world govt increase tax up to %50 not 5 talk of &70.I have been in the UK for 16 years counting one thing we all know the cost is transport fairs the increase over 16 years is not up to £3 Petrol has never been increased up to £1.it's always been in pence . .

dabossman:


I wonder why you keep writing these long essays on issues I have not picked an argument with you on. What, you think you are educating me on what should be done in a recession? Have I argued, countered or contested that with you? Where in all my write-up have I said the 70% increase is good or commendable? The only issue I have taken you up with you is the bolded delusion that sacking your staff will send a message to the President or anyone in government because they increased luxury tax. Even if they increase income tax or VAT,and you sack your staff, you'll only be deceiving yourself if you think they are bothered. Sacking them to save cost is another issue. But "making a statement" to govt? Bro please, maybe you haven't been in Nigeria long enough. You'd probably achieve more picketing Aso Rock and NASS with other entrepreneurs of like mind.

Sacking your staff to spite govt will only amount to blinking in the dark.They won't even notice, nor will they care. Mind you, making your loyal staff suffer for something that isn't their fault just to spite a government that doesn't give a rat's ass is quite vindictive on your own part too.Think about it.

Now, it's time to spend quality time with my wife and kids. Good night sir.

Can I ask you a question ?
Why would you think sacking of staff equates to spite the FG ?
When a tough policy was put in place to force banks to recapitalize where staff not laid off ?
I think a coy would lay off staff to save cost or else they will go into administration or fold up all together .come on man we see this strategy all day in the west

dabossman:


I wonder why you keep writing these long essays on issues I have not picked an argument with you on. What, you think you are educating me on what should be done in a recession? Have I argued, countered or contested that with you? Where in all my write-up have I said the 70% increase is good or commendable? The only issue I have taken you up with you is the bolded delusion that sacking your staff will send a message to the President or anyone in government because they increased luxury tax. Even if they increase income tax or VAT,and you sack your staff, you'll only be deceiving yourself if you think they are bothered. Sacking them to save cost is another issue. But "making a statement" to govt? Bro please, maybe you haven't been in Nigeria long enough. You'd probably achieve more picketing Aso Rock and NASS with other entrepreneurs of like mind.

Sacking your staff to spite govt will only amount to blinking in the dark.They won't even notice, nor will they care. Mind you, making your loyal staff suffer for something that isn't their fault just to spite a government that doesn't give a rat's ass is quite vindictive on your own part too.Think about it.

Now, it's time to spend quality time with my wife and kids. Good night sir.

Good night friend, extend my regards to that beautiful woman and the kids. But do me a favor, dont coerce them into religion. Allow them till their 18 bd to choose IF to worship, WHAT to worship and HOW to worship. The fact that most of us birthed into diverse religions question our belief system is enough to allow these indigo kids a space to wonder and thrive in their understanding of the Science of God and Art of worship and the technology of Spirit Science.

GNite.

erico2k2:

So its obvious you don't know who now have the contracts to monitor the pipe lines right ? And you too would deny not knowing who owns the Oil blocks as well ?
Make una get sense small every action has an equal and oposit action. U cancel contracts given to locals and award it to one man from the north who has no clue what do U think would happen . Billions is being looted all in the name of voting xx Money to the military to secure the pipe lines to what avail ?putting thousands out of employment . Let me stop there cos it seems you have no clue about the Creek biz.Enjoy .

You can lie for africa i swear... Please which Northerner was given the Contract?

erico2k2:

This means your N100 bag of salt is now N70 .
N10 salt will be N70 ypu call that good ?

Do you agree that one of the basic problems of Nigeria is that we are too import-dependent? If yes, this is one of the steps required for the correction. There is something called 'short run' and 'long run' in economics, thus the pain is in the short run, while the gain, long run.

APCmyheart:



You can lie for africa i swear... Please which Northerner was given the Contract?

Say you don't know and let me school you instead of trying to pick my brains which is bigger than yours . I hAve schooled you on two things 2nite
Security contact to.a northerner
2 Oil blocks owned by the Northerner and South westerners . These are facts if you find these hard to believe then you share same sentiments as those in th creeks cos they also find it hard to believe .

Esperooke:

Do you agree that one of the basic problems of Nigeria is that we are too import-dependent? If yes, this is one of the steps required for the correction. There is something called 'short run' and 'long run' in economics, thus the pain is in the short run, while the gain, long run.

I will give U a quick answer NO.
Reasons :we have nothing physical in place to give us option
Importation is not the problem rather the infrastructure to produce we need power simple
Try do Biz in Nigeria that involves use of electricity then U will get it.
I have a product I want 2 sell designed by me.I want to sell unit price @ N3k now to produce this in Nigeria cost more than N3k to produce in China and bring it back to sell N2k what do you advice me to do?this is real and what I'm doing atm I gt bck frm China few days ago .
You lots are shouting at salt importation fine do you know 2 hat amount of energy needed to evaporate sea water or brime to get crude salt ?
So my friend importation has never been our problem rather production
If I ask you as a person name 10 things that you want the FG to ban can you ?

erico2k2:

Say you don't know and let me school you instead of trying to pick my brains which is bigger than yours . I hAve schooled you on two things 2nite
Security contact to.a northerner
2 Oil blocks owned by the Northerner and South westerners . These are facts if you find these hard to believe then you share same sentiments as those in th creeks cos they also find it hard to believe .

Then who is the Northerner that was awarded the contract abi the person no get Name?

erico2k2:

Can I ask you a question ?
Why would you think sacking of staff equates to spite the FG ?
When a tough policy was put in place to force banks to recapitalize where staff not laid off ?
I think a coy would lay off staff to save cost or else they will go into administration or fold up all together .come on man we see this strategy all day in the west

Brother, you have not been following my discussion with Billyonaire. I'm not the one who suggested sacking my staff to send a message to government. I consider downsizing staff as a matter of last resort when all else fails.

Billyonaire:

Good night friend, extend my regards to that beautiful woman and the kids. But do me a favor, dont coerce them into religion. Allow them till their 18 bd to choose IF to worship, WHAT to worship and HOW to worship. The fact that most of us birthed into diverse religions question our belief system is enough to allow these indigo kids a space to wonder and thrive in their understanding of the Science of God and Art of worship and the technology of Spirit Science.

GNite.

Thanks for your suggestion. Beunas noches.

APCmyheart:




Then who is the Northerner that was awarded the contract abi the person no get Name?

Like I.said you. Have no clue about things of the Creek let us Leave it at that. Face the objject of this thread plz.

erico2k2:

Like I.said you. Have no clue about things of the Creek let us Leave it at that. Face the objject of this thread plz.

LOL funny later.

dabossman:


Brother, you have not been following my discussion with Billyonaire. I'm not the one who suggested sacking my staff to send a message to government. I consider downsizing staff as a matter of last resort when all else fails.

Noted

Truth234:
The Federal Government has raised duties on luxury goods such as yachts and Sport Utility Vehicles (SUVs) imported into the country. But also affected are some food items such as rice, salt and sugarcane that have local alternatives.

The plan to raise the duties which was first contemplated by former Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo- Iweala under the immediate past administration of Dr. Goodluck Jonathan had remained on the drawing board due to Jonathan’s loss of the presidential election to the incumbent President Muhammadu Buhari and the consequent change of officials between the former administration and the current one.

Under the new Economic Community of West Africa (ECOWAS) Common External Tariff (CET) regime which administers import and export tariffs within the West African sub-region in the movement of goods, importers of yachts and other luxury automobiles such as SUVs, boats, sports cars, and other vessels used for pleasure are now to pay 70 per cent of the value of the vehicles as taxes (duties) to the Nigeria Customs Service (NCS). The new rate is a jump from the 20 per cent which the owners currently enjoy. The increase is contained in a circular by the Minister of Finance, Mrs. Kemi Adeosun to the NCS.

Other major items affected in the duty increase include sugar cane and salt from 10 per cent to 70 per cent; alcoholic spirit, beverages and tobacco from 20 per cent to 60 per cent; and rice from 10 per cent to 60 per cent.

Also included on the list are packaged cement, from 10 per cent to 50 per cent; cotton/ fabrics materials, from 35 per cent to 45 per cent; and used cars popular known as Tokunbo, from 10 per cent to 35 per cent respectively.

Medicaments such as anti-malarials and antibiotics; crude palm oil; wheat flour; tomatoes paste; and cassava products are also affected in the upward review of duties. But essential industrial sector accessories, including bolt, industrial oil and other equipment are to enjoy a downward review to spur local industrialisation.

The cut in the import tariff on items for industrial use may encourage entrepreneurs whose industries are shut down due to the high duties paid on imported components. Such companies may resume or expand their operations as a result of the incentives.

However, while the new policy may trigger a rise in the prices of some consumable goods until the demand for them is met locally, the NCS, which has been grappling with meeting the fiscal target set for it by the Federal Government may boost its revenue.

The policy which is coming on the heels of the recent ban by the NCS on all vehicle imports through the land borders in the country, as part of measures to curb smuggling of particularly used cars into the country is going to see citizens pay higher for used cars popularly known as ‘Tokunbo.”

The smuggling of cars into the country may have dealt a very big blow to the customs’ revenue generation as the budget minister recently announced that the NCS’ projected revenue for the third quarter of this year fell short of expectation by N100 billion, recording N200 billion instead of N300 billion target given to the agency by the Federal Government.

According to the Finance Minister, Buhari has already approved the new tariff regime.The circular reads in part: “This is to confirm that Mr. President has approved the 2016 fiscal policy measures made up of the Supplementary Protection Measures (SPM) for implementation together with the ECOWAS CET 2015 – 2019 with effect from 17th October, 2016.

“Consequently, all transactions prior to the effective date of this circular shall be subjected to the tariff rates applicable before the coming into effect of this 2016 fiscal policy measures.”

It added that the approved SPM was in line with the provision of the ECOWAS CET comprising the following:“An Import Adjustment Tax (IAT) list with additional taxes on 173 tariff lines of the extant ECOWAS CET; national list consisting of items with reduced import duty rates to promote and encourage development in critical sectors of the economy; an import prohibition list (Trade), applicable only to certain goods originating from non-ECOWAS member states.”

Adeosun declared that the current fiscal policy measures superseded those of 2015, and advised the customs and other stakeholders to ensure strict compliance.

http://investorsking.com/government-raises-import-duties-consumable-luxury-goods/

When will this people learn that protectionism does not work?

Increasing tax burden in recession. I read wholet thread it's crazy if you think about it. The taxes increase doesn't fix root issue of lack of productivity in Nigeria being infastrure. The electricity is not there and roads are poor making transport difficult.

Other then a few example these protectionist policies don't do too much to help.

tiwiex:


During a recession, u do everything to boost spending. All these increase don't boost spending. It worsens d situation.

You mean borrow to spend because as it stands, we don't have any to spend

So, driving a car and a SUV has become luxury to Buhari and APC?

They should just tell us that they don't want the masses to buy cars again. How many new vehicles are assembled here compared to our needs? How many Nigerians can afford new cars? What are we doing about the quality and standard of Nigerian assembled cars? Nothing.

This policy shows how insensitive Buhari government is to the suffering of Nigerians.

This is the type of policy you expect the organised Labour to resist but you will not hear them now.

I've come to the conclusion that Buhari was imposed on Nigeria by some demonic forces to punish Nigerians. Who the hell increase import duties in a recession. After Jonathan increased import duties on cars. This mumu called buhari increased it again. You see Buhari and his economic team are lost. This goes to show u their direction for the year. So their idea is to punish Nigerians for the recession right? Infrastructure they will not develop, road they will not build, zero capital projects. All the things they should do they wont do. The funny thing about the economy and about money as a whole is that the thriftier you are, the farther it runs away from you. Recession is supposed to be the time when the govt spends as much as it can. But what this FG is trying to do is tax their way out of recession. After reading this news I have concluded that the case of Nigeria is hopeless ( at least in the hands of this economy destroyers)

9jakohai:


And if you read clearly, you would have seen that the aim is to increase local production.

Look, regardless of who is in charge, whether PDP or APC, it is time we faced the fact that we do not have enough forex, and if we don't take conservative measures, we would be like Zimbabwe in a matter of months.

And then there is this...



I am not much of a fan of this government, but this shows that someone in govt is thinking a bit more clearly.

(And by the way, I don't care for your zombie and wailer games. You can play them elsewhere).

Who are the local producers ? What incentives had the FG put in place ?
Is vehicle importation the problem we have ?
How does the forex used in buying such affect the Nigerian Economy especial when such is earned abroad ?