The Presidential Fiscal Policy and Tax Reforms Committee has announced that virtual currency will be liable to tax under the new tax reform policy.
Taiwo Oyedele, the chairman of the committee, made this statement during an online public lecture organised by the Capital Market Academics of Nigeria (CMAN) on Wednesday.
Virtual currency refers to a digital or electronic representation of value that exists solely online, without any physical form. It is typically issued and controlled by private developers or specific virtual communities and can be used for transactions within that community or exchanged for real-world currency in the case of convertible types, such as cryptocurrencies.
Mr Oyedele noted that the new policy has exempted capital market gains from tax and urged stakeholders to educate the youth on the advantages of investing in the market.
He described the exemption as an opportunity to attract young investors away from cryptocurrency and gambling.
The chairman stressed the importance of information management in the market to prevent discouraging potential investors.
“Virtual currency under the new law is liable to tax. Capital market gains for virtually everyone are exempted, so why are we not informing our young people that the returns on our capital market are better and tax-exempt?
“If you ask any young person on the street now to invest in the market, they will tell you there is a 30 per cent tax on it, and that is misinformation.
“Real people make poor decisions when misinformed; narratives shape sentiments
