Major global international digital platforms, including Facebook, Amazon, and Netflix, have paid over N600 billion in Value Added Tax to the tax net of the Federal Republic of Nigeria.
This landmark achievement was disclosed by the Special Adviser on Tax Policy to the Chairman of the Tax Reforms Committee, Mathew Osanekwu, during a workshop for media practitioners in Abuja on Wednesday.
According to him, the amendments to the VAT Act had empowered the Federal Inland Revenue Service to bring foreign companies offering services in Nigeria into the tax net.
“These are not Nigerian entities, but they are now paying VAT under Section 10 of the VAT Act. They are registered in Nigeria and are also appointed as agents of collection,” Osanekwu explained.
He stressed that the move aligns with global best practices and ensures Nigeria benefits from taxes on services consumed locally but delivered by foreign companies.
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He noted that this move aligns with international standards, ensuring Nigeria captures tax revenue from locally consumed digital services delivered by foreign entities.
During the event, the Federal Government addressed the widespread speculation stating that President Bola Tinubu have introduced new taxes in his ongoing fiscal and tax reforms, dismissing the purported media reports.
According to Professor Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, the reforms aim to provide relief to low- and middle-income individuals while promoting equity and fairness in the tax system.
He stated that many of the levies being debated in the public space, including the controversial five per cent fuel surcharge, are not new but provisions in long-standing laws before the current administration came to power.
“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 clarified.
