President Muhammadu Buhari has ordered the deployment of technology to tax all digital transactions carried out across the country.
The Secretary to the Government of the Federation (SGF), Mr Boss Mustapha disclosed this at the 17th General Assembly and 10th anniversary of the West Africa Tax Administration Forum (WATAF) in Abuja Tuesday.
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The assembly is a high-level policy dialogue on taxation of the digital economy, organised by the Federal Inland Revenue Service (FIRS).
The SGF said the President gave the order to tax authority to ensure digital transactions were taxed digitally, and the goal of their efforts was to achieve seamless digital collection and remittance of tax revenue accrued from the digital economy.
He said the President had directed the deployment of technology to good effect in revenue collection and remittance as a matter of government policy.
The SGF said this is supported by the amendment to the tax laws and empowering the tax authority to deploy technology in tax.
Mustapha said: “Our definition of what to collect- whether we call it income tax, Digital Service Tax or Value Added Tax, must address the issue of redefining who a taxable person or entity is, to accommodate the fact that digital transactions side-track the ordinary and traditional understanding of jurisdiction.”
In his remarks, the Chairman of FIRS, Mr Mohammed Nami called for collaborative efforts among African states to generate income from digital-oriented businesses.
He said: “Tax regulators and other industry stakeholders must therefore rise up to the challenge of being in a position to tap into the stream of opportunity that advancements in science and technology afford us. Science and Technology is not only about rockets going to space, it is also about effective tax collection and we must maximize it in every possible way we can.”
