Finance Bill 2022: FG Moves To Tax Cryptocurrency, Gaming, Other Digital Assets

The Minister of Finance Budget and National Planning, Zainab Ahmed says there is a provision to tax cryptocurrency and other digital assets in

the Finance Bill 2022 currently being drafted.

The Minister announced this after an extraordinary virtual meeting of the National Economic Council (NEC).

The proposed Finance Bill 2022 got the approval of the NEC after additional inputs from state governors, as the bill moves to the Federal Executive Council (FEC) for necessary approvals before finally going to the National Assembly.

 Briefing Council members about the salient features of the bill, the Finance Minister, said the proposed bill is anchored on five fundamental policy drivers – tax Equity, climate change job creation and economic growth, tax incentives reform and revenue generation and Tax Administration.

The Minister also stated that the bill is to amend relevant taxes on exercises and Duty statutes in line with the macroeconomic policy reforms of
the federal government.

According to the Minister, the bill is aimed at amending and making further provisions and specific laws in connection with the public financial management of the Federation.

She listed other aspects of the finance bill to include chargeable assets exclusion of losses and Replacements of business assets.

According to the Minister, the measure aims to ensure that all economic sectors, particularly those that have developed over time like the gaming and cryptocurrency sectors, are included in the tax nets.

For instance, all economic sectors, including those with capital gains from digital assets, cable undertakings, lottery, and gaming businesses, would be subject to taxes under the Tax Equity pillar.

In line with the government’s strategic goal of improving cross-border and international taxation of expanding e-commerce with emerging economies, the bill contains measures that make clear the legal foundation for the taxation of cryptocurrency and other digital assets.