The SGF of the Federation, Boss Mustapha announced that President Muhammadu Buhari has assented to the use of technology to tax digital transactions across the country.
This is in a bid to improve government earnings. The SGF claims the Presidency ordered the FIRS to ensure that digital transactions were duly taxed to improve the collection and remittances of tax revenue.
Read his statement in part below:
“Nigeria is putting in place measures to ensure that we keep up to date with these developments and answer the question of what to collect and how to collect it, as far as the digital economy is concerned.
“Therefore, our definition of what to collect- whether we call it Income Tax, Digital Service Tax or Value Added Tax, must address the issue of redefining who a taxable person or entity is, to accommodate the fact that digital transactions side-track the ordinary and traditional understanding of jurisdiction,” he said.
It is not yet explicit how this will affect the current tax structure, especially small businesses who, according to the existing Finance Act recently signed into law prevents them from paying taxes