Nigeria has collected over N600 billion in Value Added Tax (VAT) from global digital giants like Facebook, Amazon, and Netflix.
According to Mr. Mathew Osanekwu, Special Adviser on Tax Policy, amendments to the VAT Act enabled the Federal Inland Revenue Service to tax non-resident companies offering services in Nigeria.
“These companies are registered in Nigeria and appointed as agents of collection,” Osanekwu said.
This initiative brings Nigeria in line with international standards, allowing the country to tap into tax revenues generated by foreign companies providing services to local consumers.
This initiative brings Nigeria in line with international standards, allowing the country to tap into tax revenues generated by foreign companies providing services to local consumers.
However, Federal Government clarified that President Bola Tinubu’s tax reforms haven’t introduced new taxes, contrary to speculation.
Professor Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, said reforms aim to ease tax burdens on low- and middle-income earners while ensuring equity.
“It’s not a new tax. Some said the tax is being proposed. The tax is not being proposed. Some believe this president has introduced tax after tax, and I challenge them to point to one newly introduced tax,” Oyedele said.
“Many of us are not even aware because this president did not allow those taxes to take effect. They were suspended and eventually removed,” Oyedele added. He further clarified that the much-debated Cybersecurity Levy was enacted years ago, stressing that Tinubu’s administration did not originate it.
“This reform is the most progressive Nigeria has ever seen. It eliminates taxes on the poor, reduces the burden on the middle class, and targets higher-income earners fairly,” Oyedele noted.
