FIRS to collect N5tr tax from Twitter, other social media platforms

…Raises 2022 tax collection by nearly 30%

The Federal Inland Revenue Service, (FIRS), says it has set up an international unit that would tax giant digital companies like Twitter, Facebook and other social media platforms in 2022.

The Executive Chairman of FIRS, Mohammed Nami, made this on Wednesday, during his appearance before the public hearing by the House of Representatives Committee on the 2022-2024 Medium Term Expenditure Framework, (MTEF), and Fiscal Strategy Paper, (FSP).

According to him, the 2022 projected revenue from FIRS rose by N5 trillion due to registration of Twitter and other social media platforms.

The total revenue target has been put at N10.1 trillion, with the Federal Government taking N2.053 trillion, while the State and local governments will share the rest.

Nami said the tech giants have been included in the country’s tax bracket, adding that its new international tax department has been charged with the tax collection.

The FIRS said it hoped to exceed its 2021 performance next year by nearly 30 percent. 

He also commended the previous effort of the FIRS at ensuring that their revenue generation targets were met, while urging the Service to strive to do more in its revenue generation mandate.

The lawmaker had earlier described the MTEF and FSP, with a 3-year plan, as a major feature of the annual budget preparation cycle, saying that it provided the basic estimates and assumptions for the annual budget.

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