FIRS to Charge Nigerians 5% on Every Online Purchase Made With ATM from Next Year

  • Babatunde Fowler, the FIRS boss says Nigerian banks will be used as an agent in achieving the 5% value-added tax.

Federal Inland Revenue Service (FIRS) is planning to deduct 5% VAT for every online transaction via bank cards from next year.

Tunde Fowler, Chairman of Federal Inland Revenue Service (FIRS), confirmed this in an exclusive interview with Premium Times Newspaper.

Fowler said the country is currently working on a solution for taxing the digital economy.

We will address the issue of the digitalised economy very soon. There is no global solution to a digitalised economy.

“Different countries have taken different solutions to address the problem. Nigeria has not taken a position yet. But, we are meeting to see if we can come up with a global solution that we can all adapt to,” Premium Times quoted the FIRS Chairman as saying.

The burgeoning digital economy includes e-commerce where Jumia and Konga are playing. We also have the tech space with FlutterwaveCowrywisePiggybank, and others.

How FIRS plans to tax the digital economy

Tunde Fowler boss said the tax agency will make use of Nigerian banks as an agent in achieving the 5% value-added tax.

ALSO READ: Small Businesses that Require Less Capital in Nigeria

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