Federal Government Considers New 5% Tax On All Online Purchases From Next Year

Date: 05-08-2019 10:58 am (1 year ago) | Author: Adegbenga Ayinla
- at 5-08-2019 10:58 AM (1 year ago)
(m)

Federal Government is planning to deduct 5% VAT for every online transaction via bank cards carried out by Nigerians from next year.
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.
Quote
“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,”
FIRS Chairman said.
The FIRS boss said the tax agency will make use of Nigerian banks as an agent in achieving the 5% value-added tax.
Nigerian government projected digital economy to generate $88 billion and create up to three million jobs in the next three years.
The former minister of Industry, Trade, and Investment, Dr. Okey Enelamah, during a US 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
Analyst says the digital economy may impact tax revenue in 2019
Taiwo Oyedele, Head of Tax and Regulatory Services at PwC Nigeria, in a blog post, had listed digital economy among major issues that will impact the tax system in 2019.
Oyedele, however, advised Nigeria’s fiscal authority to take measures to address this.

Posted: at 5-08-2019 10:58 AM (1 year ago) | Gistmaniac
- Lisabi at 5-08-2019 12:27 PM (1 year ago)
(m)
We don't see the impact in Nigerians life.
Posted: at 5-08-2019 12:27 PM (1 year ago) | Upcoming
Reply
- Lisabi at 5-08-2019 12:28 PM (1 year ago)
(m)
We don't see the impact in Nigerians life.
Posted: at 5-08-2019 12:28 PM (1 year ago) | Upcoming
Reply
- Erekosima at 5-08-2019 12:31 PM (1 year ago)
(m)
Another way to steal from the masses
Posted: at 5-08-2019 12:31 PM (1 year ago) | Upcoming
Reply
- james987 at 5-08-2019 01:20 PM (1 year ago)
(m)
All those that voted APC and buhari una fit feel am now. Jonathan was so bad according to ya all. How market?
Posted: at 5-08-2019 01:20 PM (1 year ago) | Hero
Reply
- kp45 at 5-08-2019 01:51 PM (1 year ago)
(m)
What a country.
Posted: at 5-08-2019 01:51 PM (1 year ago) | Hero
Reply
- Henrybobo at 5-08-2019 04:31 PM (1 year ago)
(m)
Always looking for how to collect.. until they wreck everybody they won't rest .. demonic useless govt... Mtcheeew
Posted: at 5-08-2019 04:31 PM (1 year ago) | Gistmaniac
Reply
- owenrules at 14-01-2021 07:35 PM (1 month ago)
(m)
Okay, that makes sense, but is it possible that the laws will get even tougher in 2021? Are there any risks in this case? I believe that everyone now needs to have at hand the best tax calculator in order to always be aware of their costs and the balance of debts. This is an indispensable tool for those who have taxes or loans. I am sure now many people have it, so this calculator will definitely become a necessary attribute for everyone. Personally, it helped me a lot, so I recommend it to you
Posted: at 14-01-2021 07:35 PM (1 month ago) | Newbie
Reply