‘Block leakages in digital tax to grow economy’

Taxation experts have urged governments at all levels to block leakages in digital tax to grow the nation’s economy.

According to the experts, digitalisation of economies has created new challenges as many African countries are not able to tax highly digitalised businesses based on the current international tax rule.

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The Executive Secretary of the African Tax Administration Forum (ATAF), Mr Logan Wort, spoke on the prospects and challenges of digital taxes in the 21st Century at the just concluded 23rd Annual Tax Conference organised by the Chartered Institute of Taxation of Nigeria (CITN) in Kaduna.

According to him, “The rapid digitalisation of the African economies often enable Multi-National Enterprises (MNEs) to carry out businesses in African countries with no or very limited physical presence in those countries.

Also, a Professor of Management and Accounting from Lead City University, Ibadan, Godwin Oyedokun, said Nigeria should introduce a digital fixed base to increase government revenue.

According to him, “Although some developed and developing nations have ensured an effective taxation of the digital services, countries like Nigeria will need to borrow a leaf from such nations to tackle leakages in the digital economy through innovative tax legislation.