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New bills seeks to tax betting and gaming services

Nigerian Government aims towards greater revenue generation by targeting gaming and betting services with taxes.
tax gaming betting

Breaking News: As part of the ongoing tax reform the Federal Government of Nigeria has introduced a new bill which will mandate betting and gaming services to pay 5% of their earnings as tax.

The bill as seen at the National Assembly is dated October 4, 2024 and 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”.

This newly proposed tax law if passed will be featured into the body of laws governing tax in Nigeria, known as the ‘Nigerian Tax Act’.

If this law comes into force it will imply that all financial transactions linked to betting and gaming services in the country will incure an excise duty of 5%.

Further information on currency trade regulations

Also featured in the bill is a law that mandates all excess profits made from trading the Naira to be turnover to the Central Bank of Nigeria (CBN) as excise duty. This specifically means that any differences between the official CBN exchange rate and the actual transaction rate resulting in an excess value or profit, the excess value will be paid as excise duty.

A portion of the bill obtained by 9am News Nigeria states “Where an exchange of currency transaction involving the Naira is conducted within or outside Nigeria – (a) the transaction shall be conducted at an exchange rate not exceeding the prevailing exchange rate at the official market authorised by the Central Bank of Nigeria; and (b) where the exchange rate of the transaction exceeds the prevailing exchange rate at the official market authorised by the Central Bank of Nigeria, the excess shall be payable as excise duty by the seller on a self-assessment basis as provided in the Nigeria Tax Administration Act”.

Conclusion

9am News Nigeria recounts that economic reforms in Nigeria are in full gear aimed at diversifying the economy from dependence on oil revenue to a more tax-based economy amidst growing financial pressures.

Furthermore, Nigeria’s gaming and betting sector has experienced rapid growth in recent years as more young people take to betting and gaming for recreation and the money earning potentials provided by those services.

The government sees an opportunity to widen its revenue base and tackle revenue challenges by targeting the country’s vibrant gaming and betting services with taxes.

The passage of this bill will see the costs of betting and gaming hiked due to the burden of excise duties.

Stay tuned to 9am News Nigeria for more Breaking News, Business NewsSports updates And Entertainment Gists.

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