FG to Start Imposing Tax on Crypto Traders By 2023

The Federal Government through the Minister of Finance, Budget and  National Planning, Zainab Ahmed has said there is a provision to start imposing taxes on cryptocurrency and other digital assets investing in the 2022 finance bill.

A  statement signed late Thursday by the Senior Special Assistant to the Vice President on Media and Publicity, Laolu Akande noted that the finance bill was discussed at an extraordinary virtual meeting of the National Economic Council presided over by Vice President Yemi Osinbajo. 

The meeting also deliberated on other prevailing issues which include Taxation, Revenue Generation, Climate Change and the Green Growth pillar of the bill. 

If passed into law, this will avail the government an opportunity to start generating revenue from growing cryptocurrency investment in Nigeria.

Investor King learnt that the federal government is already talking to Investors in Europe, US and Canada to invest in Nigeria’s gas sub-sector. 

According to the statement, the meeting agreed that there should be incentives for the natural gas sector and discouragement of gas flaring.

“Under the climate change and green growth bill, there will be incentives for natural gas” the statement partly read. 

With respect to cryptocurrency, the bill these clarify the basis for the taxation of Cryptocurrency and other Digital Assets in line with the Government’s policy thrust of enhancing the cross-border and international taxation of growing e-commerce with emerging markets.

It could be recalled that the CBN in 2021 directed that all commercial banks should close accounts of persons or entities involved in cryptocurrency transactions. 

However, it seems the government is taking a soft position on cryptocurrency in recent times particularly as the largest crypto exchange in the world, Binance now accept naira deposit and withdrawal. 

Meanwhile, Investors King understands that if the bill is passed into law, Nigeria will join other countries which include the Kingdom, the United States of America, Australia, India, Kenya and South Africa that are currently taxing cryptocurrency.

Speaking further on the finance bill 2022, the Minister of Finance noted that the proposed bill is anchored on five fundamental policy drivers which are tax equity, climate change,  job creation and economic growth, tax incentive reform and revenue generation.