Nigeria can boost its revenues by enacting fair, friendly and flexible tax laws targetted at the booming digital economy, experts have said.
They spoke in Lagos at the 14th Annual Lecture of Punuka Attorneys and Solicitors, with the theme: Taxation of the Digital Economy: The Challenges and Prospect for Nigerian Economy.”
Guest speaker Dr. Alexander Ezenagu, said given present international conventions where digital business and economy are fast developing, Nigeria needs a good laws that will enable the government to appropriately levy taxes on businesses operating digitally.
The don reasoned that this is essential considering the speedy pace at which the digital economy is developing.
Also speaking at the event, the Minister of State for Budget and National Planning, Prince Clem Agba, said the digital economy is high on the list of untapped sources of funds for the Nigerian tax authorities, adding that it is the future of the nation.
Agba, whose views alligned with Dr. Alexander’s, said a delicate balance must be achieved such that taxation of the digital economy deos not stifle its growth, noting that taxes are the lifeblood of government revenue.
“It is the blood with which the economy runs and functions, and without it, a government will not be able to fulfil its obligations to the citizenry.
”Whatever affects collectible taxes will therefore affect the health, existence and performance of the government and the economy,” Agba said.
He explained that the digitalisation of the economy had revealed some challenges and shortcomings in the existing tax practice as it affects the allocation of taxing rights and administration of taxes, especially with respect to non-resident taxpayers.
In her welcome address, the Managing Partner of Punuka Attorneys & Solicitors, Mrs. Elizabeth Idigbe noted that the advent of the internet had birthed prime opportunities for globalisation.
Mrs Idigbe said: “The digital space in Nigeria has witnessed immense growth over the years. In January 2022, Kepios Data analysis reports that internet users in Nigeria rose by 4.5million.
“That globalisation has brought about digital trade, commerce and taxation. It has also resulted in major digital advancement with the emerging issues on crypto currency-commerce and cross border digital trade.
“It has become imperative to examine incidental issues on taxing the digital economy as it presents the Nigerian government with huge potential and, at the same time, tax policy may be disincentives for the growth of digital business. This informs the theme of the annual lecture for this year”.
This year’s hybrid lecture is the 14th in the series and it was attended by a worldwide audience.