Nigeria is gearing up for a significant overhaul in its tax system, with the introduction of new laws set to include regulations for the cryptocurrency industry. Dr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), made this announcement on Saturday during the FIRS 2024 Stakeholders Engagement at Eko Hotel and Suites, Lagos. Speaking at the event, Dr. Adedeji disclosed that the Federal Government plans to roll out these new tax laws by September, marking a major shift in Nigeria's revenue administration. The upcoming legislation aims to harmonize existing tax regulations, simplify compliance, and align with President Bola Tinubu's economic strategy. "By the special grace of the Almighty God, we will present a bill that will overhaul the entire process of revenue administration in Nigeria. This initiative seeks to harmonize revenue collection, simplify tax laws, and ensure they reflect our current realities," said Dr. Adedeji. One of the key components of this legislative package is the introduction of regulations for the cryptocurrency sector. Despite the absence of specific laws governing crypto transactions in Nigeria, Dr. Adedeji emphasized the need for regulation to safeguard the nation’s economic development. "While we cannot avoid cryptocurrency, given its global prevalence, there is an urgent need for laws that regulate this sector. This is standard practice in other countries, and as innovations arise, we must ensure they are managed in a way that does not harm Nigeria’s economic growth," he added. This move comes on the heels of KuCoin, a leading cryptocurrency exchange in Nigeria, announcing in June that it would begin collecting a 7.5% Value-Added Tax (VAT) on transaction fees from its Nigerian users. The new legislation could further expand the scope of cryptocurrency taxation in the country. In addition, Dr. Adedeji assured stakeholders that the FIRS is on track to meet the N19.4 trillion revenue target set by the National Assembly for the year, signaling a robust push to enhance Nigeria’s fiscal landscape.
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