According to Zainab Ahmed, minister of finance, budget, and national planning, there is a provision in the 2022 finance bill to tax crypto currency and other digital assets.
During the National Economic Council, she stated that the main feature of the bill is based on five fundamental policy drivers.
Tax equity, climate change job creation and economic growth, tax incentive reform and revenue generation, and tax administration were among the drivers she identified.
She also stated that the bill will amend relevant taxes on exercises and duty statutes in accordance with the federal government’s macroeconomic policy reforms.
According to Ahmed, the bill aims to amend and create new provisions and laws related to the Federation’s public financial management.
Other aspects of the finance bill, she said, include chargeable assets exclusion of losses and business asset replacements.
She went on to say that the measure aims to ensure that all economic sectors, particularly those that have grown over time, such as the gaming and crypto currency industries, are included in tax nets.
For example, all economic sectors, including those with capital gains from digital assets, cable undertakings, lottery, and gaming businesses, would be taxed under the Tax Equity pillar.
In line with the government’s strategic goal of improving cross-border and international taxation and expanding e-commerce with emerging economies, the bill includes provisions that clarify the legal basis for taxing crypto currency and other digital assets.
One of the digital tax issues that is consistent with the bill’s tax fairness pillar is the taxation of capital gains from digital assets such as lottery, gaming (sports betting), and cable undertaking. Nigeria’s government believes that by taxing digital assets, it will join the ranks of countries that already do so.
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