Nigeria to Propose Cryptocurrency Tax Bill by September, Says FIRS Chairman

Nigeria's tax authority, the Federal Inland Revenue Service (FIRS), is taking steps to tax cryptocurrency. They plan to introduce a bill to parliament by September. This information comes from a report by Punch Nigeria.

Zacch Adedeji, the executive chairman of FIRS, shared this news during a meeting with the National Assembly's finance committees. He emphasized the need for a regulatory framework for cryptocurrencies. “The plan first is to have the law that regulates it,” he said. This law will serve as the foundation for any taxation.

Some officials believe that cryptocurrencies have contributed to the decline of Nigeria's currency, the naira, against the dollar. Central Bank Governor Olayemi Cardoso even claimed that the crypto exchange Binance allowed $26 billion to leave the country without a trace last year. This situation has impacted tax revenues and led to the arrest of a Binance executive.

Adedeji pointed out that other countries are also moving to tax cryptocurrencies. “You just have to get ready for it because you can’t go away from it,” he stated. He stressed the importance of regulating cryptocurrencies to ensure they do not harm Nigeria's economic development.

In related news, the crypto exchange KuCoin announced last month that it would start collecting Value Added Tax (VAT) on transaction fees for its Nigerian users. This move indicates a growing trend toward regulation in the crypto space.