The minister of finance budget and National planning Zainab Ahmed says there is a provision to tax cryptocurrency and other digital Assets in the 2022 finance bill.
Speaking on the main feature of the bill during the National Economic Council, she said the proposed bill is anchored on five fundamental policy drivers. She listed the drivers as tax Equity, climate change job creation and economic growth, tax incentives reform and revenue generation and Tax Administration.
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She also noted that the bill is to amend relevant taxes on exercises and Duty statutes in line with the macroeconomic policy reforms of
the federal government.
According to Ahmed, the bill is aimed at amending and making further provisions and specific laws in connection with the public financial management of the Federation.
She she said other aspects of the finance bill include chargeable assets exclusion of losses and Replacements of business assets.
She added that the measure aims to ensure that all economic sectors, particularly those that have developed over time like the gaming and cryptocurrency sectors, are included in the tax nets.
For instance, all economic sectors, including those with capital gains from digital assets, cable undertakings, lottery, and gaming businesses, would be subject to taxes under the Tax Equity pillar.
In line with the government’s strategic goal of improving cross-border and international taxation of expanding e-commerce with emerging economies, the bill contains measures that make clear the legal foundation for the taxation of cryptocurrency and other digital assets.
One of the digital tax issues that is in keeping with the tax fairness pillar of the bill is the taxation of capital gains from digital assets like lottery, gaming (sports betting), and cable undertaking.
Nigeria’s government believes that by levying taxes on digital assets, it will join the league of countries that already do this.