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FG's expanded digital tax net targets N230bn haul in 2025

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The federal government's expanded digital tax net is projected to generate N230 billion in revenue by 2025, marking a 31.35
The Nigerian Federal Government is set to expand its digital tax net, aiming to generate N230 billion by 2025 through the implementation of the Finance Act 2023. This initiative includes taxing digital assets, online services, and foreign digital companies operating within Nigeria. The move is part of a broader strategy to diversify revenue sources beyond oil, focusing on the burgeoning digital economy. The government plans to introduce a 6% tax on digital asset transactions, a 5% tax on foreign digital services, and a 10% tax on electronic money transfers. This expansion aims to capture revenue from tech giants like Google, Netflix, and Amazon, which have been largely untaxed in Nigeria. The policy has sparked debate, with concerns about its impact on digital innovation and the potential for double taxation, but it is also seen as a step towards modernizing Nigeria's tax system to align with global digital economy trends.

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[ https://businessday.ng/news/article/fgs-expanded-digital-tax-net-targets-n230bn-haul-in-2025/ ]