Amended Finance Bill to tax digital assets, Telco services
By Oghale Mafuru
The 2022 Finance Bill which is before the National Assembly for legislative consideration and opened for Public Hearing on Friday, 13th January next year is expected to implement 10% tax on gains recorded on digital assets as telcos will be subjected to excise duty at rate which will be determined by a Presidential Order.
According to a statement signed by Honourable James Abiodun Faleke, Chairman, House Committee on Finance, MDAs, critical stakeholders and the general public were directed to submit their memoranda to the Chairman on or before Friday, 13th of January, 2023.
“A Money Bill [Act] to amend relevant tax, excises and duty statutes in line with the macroeconomic policy reforms of the Federal Government; to amend and to make further provisions in specific laws in connection with the public financial management of the Federation”, the statement iterated some areas to look into.
The statement also proposed an amendment of the Capital Gains Tax as Digital assets have been included on the list of taxable items.
“These provisions clarify the basis for the taxation of Cryptocurrency and other Digital Assets in line with Government’s policy thrust of enhancing the cross border and international taxation of growing e-commerce with emerging markets. By doing so, Nigeria joins the league of jurisdictions currently taxing digital assets, including the United Kingdom, United States of America, Australia, India, Kenya and South Africa” it said.
Furthermore, telecommunication services provided in Nigeria shall be charged excise duties at the rates specified by a Presidential Order.
“All services, including but not limited to telecommunication services, provided in Nigeria shall be charged with duties of excise at the rates specified under the duty column in the Schedule as the President may by Order prescribe pursuant to section 13 of this Act”.
Citing reasons for it, the statement stated that “This amendment is essential to expand the scope of duties beyond the telecommunication sector in order to avoid and undue focus on levying duties on this sector, thereby removing the limitation of the scope of services that may be subject to excise duty”.
Companies involved gaming; gambling, betting, or lottery will also be taxed under the Companies Income Tax Act.
The Bill under review seeks to amend Capital Gains Tax Act (CGTA), Companies Income Tax Act (CITA), Customs, Excise Tariff, etc. Consolidation) Act, Personal Income Tax Act (PITA), Petroleum Profits Tax Act (PPTA), Stamp Duties Act (SDA) Value Added Tax Act (VATA) among others.
RECOMMENDED ARTICLES
Comment
No comments found.