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A coalition of Nigerian civil society organizations has applauded the plan by Zacch Adedeji, head of the Federal Inland Revenue Service, to include cryptocurrencies in the tax system. The CSOs believe this move will boost confidence in the crypto market and attract foreign investors. The CSOs believe a regulatory framework specifically designed for cryptocurrency trading is crucial for the effective management of the sector.
Nigerian Tax Laws Outdated for Digital Economy
A coalition of Nigerian civil society organizations (CSOs) has praised Zacch Adedeji, the executive chairman of the Federal Inland Revenue Service (FIRS), for his proposal to integrate cryptocurrencies into the tax system.
In a statement, the coalition’s national secretary, Mallam Yakubu Mohammed, and national coordinator, Barr Godspower Ebi, said the FIRS chief’s move could boost confidence in the cryptocurrency market while also protecting consumers. Furthermore, the move is likely to reduce tax evasion cases involving crypto and attract foreign investment, the duo added.
As previously reported by Bitcoin.com News, Adedeji initially announced the proposal to include cryptocurrencies in the tax system during his appearance before the Nigerian National Assembly joint committee. He argued that Nigerian tax laws are not consistent with current economic realities and need amendment.
Mohammed and Ebi echoed this sentiment, highlighting the importance of aligning tax laws to adapt to the ever-changing digital economy.
“Adedeji’s approach aligns with global best practices, and his leadership ensures that Nigeria’s tax policies adapt to the evolving digital financial economy. This move will create a more transparent, secure, and thriving financial system for Nigeria,” Mohammed and Ebi explained in their joint statement.
According to Nigerian CSOs, the West African nation’s current tax regulations, including the Stamp Duty Act of 1939, are outdated and inadequate for dealing with the complexities of digital currencies.
The CSOs also believe a regulatory framework tailored for cryptocurrency trading is essential if Nigeria is to effectively manage this sector.