Director-General of the Debt Management Office (DMO), Dr. Abraham Nwankwo has canvassed for the introduction of special taxes on luxury items in order to enable the country generate enough revenue and create more borrowing space.

Nwankwo spoke during a retreat for members of the Senate Committee on Local and Foreign Debts organised by his office in Uyo on the topic: ‘Implications of rebasing of the Gross Domestic Product for public debt management”.

He narrated that the nation’s revenue was fast dwindling and warned that even though the GDP had become higher, the country’s borrowing space was small.

The DMO boss explained that revenue from luxury taxes should also be used to provide goods and services for the citizens, adding that rebasing results show that the country needs to do more in terms of revenue collection so that as the GDP is growing, the government’s revenue will also be growing, with enough resources to solve the country’s problems.

“After rebasing, Nigeria’s GDP became much bigger from about N42tn to over N80tn. So, in terms of debt to GDP ratio, it means that our debt GDP fell. That gives an impression that our borrowing is small relative to our GDP.

“Special taxes should be introduced on luxury items so that there will be more revenue to provide goods and services for the generality of the people and to cater for those who are not gainfully employed in terms of making sure that every child in Nigeria attends schools.

“This means that both individuals and companies need to make sure that they pay their taxes on time and in full. Measures need to be taken against those who are not paying taxes,” he stated.