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FG Proposes 5% Tax On Telecoms, Gaming, Betting

Published

1 month ago

Oct 20, 2024.

The Federal Government has proposed a five percent excise duty on telecommunications services, gaming, and betting activities as part of a new bill aimed at overhauling Nigeria’s tax framework.

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,” the bill was dated October 4, 2024, and obtained from the National Assembly.

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EKO HOT BLOG reports that an analysis of the proposed legislation indicates that it seeks to introduce excise duties on services such as telecoms, gaming, gambling, lotteries, and betting provided in Nigeria.

A section of the bill states, “The amount of an excisable transaction is the amount chargeable for the service by the service provider, both in money or money’s worth.”

The proposed excise duty structure specifies that telecom services, including postpaid and prepaid offerings regulated by the Nigerian Communications Commission, will attract a five percent duty.

This same rate will also apply to gaming, gambling, betting, and lottery services.

Additionally, the bill introduces guidelines on currency transactions, stating that any discrepancy between the prevailing Central Bank of Nigeria (CBN) exchange rate and the actual transaction rate will be subject to excise duty.

5% Tax Telecoms Betting

This new tax regime is part of the government’s strategy to boost non-oil revenue amid fiscal pressures.

With rapid growth in the telecoms and betting sectors, authorities are keen to expand the revenue base.

The bill also aims to ensure that currency exchanges align with official CBN rates, with any excess payable as excise duty under a self-assessment model.

By targeting these sectors, the government seeks to enhance its fiscal capacity and provide more robust public services.