FG is set to tax digital assets like Cryptocurrency and Gaming.
After an extraordinary virtual meeting of the National Economic Council (NEC), it was announced that there is a resolution, to update the Financial Bill currently being drafted, with additional inputs from State Governors, as the bill moves to the Federal Executive Council (FEC).
Ministry of Finance
According to the Minister of Finance, Zainab Ahmed, the Finance Bill seek to amend relevant taxes, excise and duty statutes, in line with the macroeconomic policy reforms of the Federal Government.
She added that the bill will also amend and make further provisions in specific laws in connection with the public financial management of the Federation.
Furthermore, she stated that the bill is also aimed at ensuring that all sectors of the economy are brought under the tax nets, especially sectors that have evolved over the years, such as the ones involving digital assets like cryptocurrency, lottery and gaming.
Digital Tax considerations
According to the Minister, the bill contains provisions that seek to clarify the basis for the taxation of Cryptocurrency and other Digital Assets, which is in line with the Government’s policy drive, towards enhancing the cross-border and international taxation of growing e-commerce, with emerging markets.
In the decision to tax these digital assets, the government is of the view that this will bring Nigeria at par with countries like UK, USA, Australia, India, South Africa and Kenya that is already practicing same.
Even though digital assets such as cryptocurrencies are barred under Central Bank of Nigeria (CBN)’s provisions; SEC (Securities & Exchange Commission) still recognizes digital assets like crypto, as security.
National Economic Council (NEC)
The NEC comprises 36 governors, the CBN Governor, and other co-opted government officials. It is chaired by the Vice President of Nigeria.
Their mandate is to advice the President on issues concerning the economic affairs of the Federation and on the measures necessary for the coordination of the economic programmes of the various governments of the Federation.
Some members of the Federal Executive Council attend the NEC monthly meetings.