The federal government has moved to increase the excise duty on telecommunications services, gaming, and betting activities by five percent, which is a new initiative to overhaul Nigeria’s tax framework.
It was disclosed that the bile is titled a Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters, it lernt that it was dated October 4, 2024, and obtained from the National Assembly.
An in-depth analysis of the proposed legislation on Friday indicated that it desires to introduce excise obligations on services such as telecoms, gaming, gambling, lotteries, and betting provided in Nigeria.
A part of the bill noted that an excisable transaction is the amount charged for the service by the service provider, both in money or money’s worth.
The bill’s breakdown of the excise duty structure indicates that telecoms services, including postpaid and prepaid services regulated by the Nigerian Communications Commission, will attract a five per cent duty.
The exact rate will apply to gaming, gambling, betting, and lottery services.
It was also learnt that the bill will also introduce a guide on currency transactions, specifying that any difference between the prevailing Central Bank of Nigeria exchange rate and the actual transaction rate will be subject to excise duty.
The new move is part of the new tax regime and forms part of the government’s strategy to boost non-oil revenue amid fiscal pressures.
In recent years, the country has witnessed the growth of the telecoms and betting sectors, which is why the government is looking at ways to increase revenue generation through these sectors.
The bill also aims to ensure that currency sales align with authorised CBN rates, with any extravagance payable as excise duty underneath a self-assessment standard.
