FG Rakes In N600bn Tax From Facebook, Netflix

The federal government says is has earned over N600 billion in value-added tax from social media platform Facebook and other digital service providers such as Netflix and Amazon.

Mathew Osanekwu, the Special Adviser on Tax Policy to the Chairman of the Tax Reforms Committee, Taiwo Oyedele made the revelations, saying the development was made possible due to the recent tax reform policy of the federal government.

President Bola Ahmed Tinubu had in July this year signed the Tax Act, believe by tax experts to be capable of changing the nation’s tax landscape. Some provisions in the tax law have also become very controversial, even though the government said it has yet to decide whether to allow the Act takes effect form January next year as provided in the law.

According to Osanekwu, the new tax law has made it possible for foreign companies, doing business in the country to be brought into the tax net.

. “These are not Nigerian entities, but they are now paying VAT under Section 10 of the VAT Act. They are registered in Nigeria and are also appointed as agents of collection,” he said, adding that government’s action is in line with global best practices where non-resident companies are made to pay tax in countries where they do business.