Nigeria’s financial authorities recently announced plans to overhaul the tax system to include crypto assets. A Nigerian organization has hailed the upcoming proposal, which aims to update existing policies and adapt to the evolving financial landscape, describing the effort as a “game-changer” for the country’s economic growth.
FIRS tax reform to boost foreign investment
On Monday, the Organization of Nigerian Professionals in Diaspora organized Clap The Federal Inland Revenue Service (FIRS)’s efforts to modernize the country’s legal system.
The Chairman of the Group, Obiora Okereke, and the Minister of Interior, Bukola Shonekan, commended the recently announced plan by the Authority, highlighting the efforts of the tax authorities to develop the Nigerian financial landscape and align it with global standards.
According to local reports, the statement considered the upcoming cryptocurrency tax reform a “bold step towards embracing the digital economy,” noting that current policies are not suitable for today’s landscape.
For the organization, the FIRS’s plan to set clear guidelines for crypto assets and leverage technology to facilitate compliance is a “game changer” for economic growth. Moreover, they see the move as a “builder of confidence” in the market and protect consumers.
By setting clear rules for digital assets, these reforms make it easier for individuals and businesses to understand and meet their tax responsibilities. This clarity helps build confidence in the cryptocurrency market and encourage more people to participate.
Having clear guidelines for taxing cryptocurrencies could also attract international investment, which has been affected by the country’s crackdown on the sector. Organizations like the Blockchain Industry Coordination Committee of Nigeria (BICCoN) have pointed out that disputes like the Binance saga have already affected the industry.
In June, BICCoN expressed concerns about the overall negative impact of the anti-crypto campaign in the country, noting that there had been a “significant decline in investments in Nigerian Web3 startups.”
Okereke and Shonekan urged investors to support the initiatives of the Nigerian Federal Reserve Fund, noting that “this move will create a more transparent, secure and prosperous financial system in Nigeria.”
Cryptocurrency Tax Proposal Set for September
Earlier this month, FIRS open The South African Revenue Authority has announced that it intends to introduce a bill to add cryptocurrencies to the tax code. The authority’s CEO, Zak Adedeji, announced that the institution will seek the support of the National Assembly to overhaul the country’s entire revenue administration process.
The bill, due to be introduced in September, aims to “consolidate, amend and simplify” Nigeria’s tax laws. It also aims to update outdated policies that have not taken into account technological developments such as the internet or crypto assets.
During a meeting with the Finance Committees of the National Assembly, President Adedeji acknowledged the growing rate of adoption of crypto assets and highlighted the need to regulate the industry without compromising the country’s economic development:
The first plan is to put in place the law that will regulate this process, that is why we see that we are here with the legislature that will be the basis for the imposition of fees. This is what happens anywhere else in the world when there is such an innovation or system, so we have to prepare for it because we cannot afford to let it go. So we have to plan to regulate it in a way that will not harm the economic development of Nigeria.
The inclusion in the tax reform is part of the country’s apparent shift toward the sector, which includes the Securities and Exchange Commission’s plans to regulate the crypto market and license virtual asset providers.
Bitcoin (BTC) is trading at $63,817 in the weekly chart. Source: BTCUSDT on TradingView
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