By Jeph Ajobaju, Chief Copy Edit
Abuja announced on Tuesday that it has raised $4 billion in Eurobond, coinciding with news that President Muhammadu Buhari has ordered the use of technology to tax all digital transactions to raise revenue, mainly to service mounting debts.
“The Order book peaked at $12.2 billion, which enabled the Federal Government to raise $1 billion more than the $3 billion it initially announced,” the Debt Management Office (DMO) said in a release.
Bids were received from Europe, America, and Asia with participation from local investors, the DMO added, reported by Nairametrics.
The notice set September 28 for the bond settlement, which will be listed on the London and Nigerian Stock Exchanges.
Eurobonds are part of Buhari’s plan to raise N2.343 trillion ($5.71 billion) in external loans to fund the N5.6 trillion deficit in the 2021 budget.
Senators are currently considering his request to obtain new $4 billion and €710 million loans from bilateral and multilateral organisations.
Secretary to the Government of the Federation (SGF), Boss Mustapha, announced the digital tax at the 17th General Assembly and 10th anniversary of the West Africa Tax Administration Forum (WATAF) in Abuja, organised by the Federal Inland Revenue Service (FIRS), reported by the News Agency of Nigeria (NAN).
Taxing consumption to grow revenue
In the report, quoted by Nairametrics, Mustapha said Buhari ordered the FIRS to ensure digital transactions are taxed digitally to upgrade revenue collection and remittance.
“Nigeria is putting in place measures to ensure that we keep up to date with these developments and answer the question of what to collect and how to collect it, as far as the digital economy is concerned.
“Therefore, our definition of what to collect, whether we call it Income Tax, Digital Service Tax or Value Added Tax, must address the issue of redefining who a taxable person or entity is, to accommodate the fact that digital transactions side-track the ordinary and traditional understanding of jurisdiction,” he stressed.
FIRS Chairman Mohammed Nami reiterated the importance of WATAF which was set up to create an atmosphere for dialogue on collaboration, citing its theme for 2021, “The Taxation of the Digital Economy: Exploring Untapped Revenue Sources in Africa.”
Nami said: “When you speak of taxing the digital economy, you are talking about an economy without physical borders, trade and commerce that transcend our natural geographical delineations.
“In terms of tax administration, the only way that this can possibly be done with any accuracy and effectiveness is if it is done digitally since the commercial activity itself is also done digitally.
“Tax regulators and other industry stakeholders must therefore rise up to the challenge of being in a position to tap into the stream of opportunity that advancements in science and technology afford us.”
