The Finance Bill 2022 is expected to bring all sectors of the economy into the tax net, including Capital Gains Tax from digital assets, Cable Undertakings, Lottery and Gaming Businesses.
Last year, the Central Bank of Nigeria (CBN) directed banks to stop doing business with persons or entities involved in cryptocurrency transactions within their systems.
The apex bank further urged citizens to desist from crypto assets, warning that they are used to fund illegal dealings.
Now, the minister of finance, budget and national planning, says there is a provision to tax cryptocurrency and other digital assets in the 2022 finance bill. The minister said the proposed bill is anchored on five fundamental policy drivers.
She listed the drivers as tax equity, climate change, job creation/ economic growth, tax incentives’ reform and revenue generation/tax administration.
She said that the bill sought to amend relevant taxes, excises and duty statutes in line with the macroeconomic policy reforms of the federal government. The minister said the proposed bill clarified the taxation of cryptocurrency and other digital assets in line with the government’s policy thrust of enhancing cross-border and international taxation of growing e-commerce with emerging markets.
By doing so, Nigeria would join the league of jurisdictions currently taxing digital assets, including the UK, the US, Australia, India, Kenya and South Africa.