FG To Charge Nigerians 5% On All online Transaction From Next Year - AMEBO ONLINE NEWSPAPER


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FG To Charge Nigerians 5% On All online Transaction From Next Year

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From next year, 2020, the Federal Government is set to deduct 5% VAT for every online transaction via bank cards.

The burgeoning digital economy includes e-commerce where Jumia and Konga are playing. We also have the tech space with Flutterwave, Cowrywise, Piggybank, and others.

Tunde Fowler, Chairman of Federal Inland Revenue Service, FIRS, confirmed this in an exclusive interview with Premium Times Newspaper.

Fowler said the country is currently working on a solution for taxing the digital economy.

“We will address the issue of the digitalised economy very soon. There is no global solution to a digitalised economy.

“Different countries have taken different solutions to address the problem. Nigeria has not taken a position yet.

“But, we are meeting to see if we can come up with a global solution that we can all adapt to,” the FIRS Chairman was quoted as saying.

Nigerian government projected digital economy to generate $88 billion and create up to three million jobs in the next three years.

Former Minister of Industry, Trade, and Investment, Dr. Okey Enelamah, during a U.S. roadshow last year said the Nigerian government is resolute in creating an enabling environment where digital economy opportunities are not just theoretical but become real.

On how the FIRS plans to tax the digital economy, Fowler said the tax agency will make use of Nigerian banks as an agent in achieving the 5% value-added tax.

Analyst says the digital economy may impact tax revenue in 2019.

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