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Nigerians To Pay Taxes For Using Facebook, Twitter, Snapchat, Others

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Nigerians using any of twitter, Facebook, Google, Skype, Netflix and other companies will now pay tax for service rendered.

This was confirmed in a mail sent to customers by one of the affected companies, Skype, on Thursday.

The tax is directly to Nigerians who use the platform as a means to market, sell their products and also those who use subscription services.

With the new regulation, Nigerians will now pay a value added tax (VAT) at the applicable rate of 7.5 percent.

The new tax regime is in pursuant of the Companies Income Tax (Significant Economic Presence) Order, introduced in 2020 as an amendment of the Finance Act 2019.

The document imposes tax on any “foreign entity with respect to certain services or digital transactions tax foreign digital service providers offering services to Nigerians and earning revenue in naira.

The email to Skype customers seen by Ripples Nigeria reads:

“Due to recent changes to Nigerian tax requirements, from 1st July 2021, Skype is required to include a 7.5% Value Added Tax (VAT) on purchases of Skype paid products for Nigerian customers.

“How does this impact the allocation of Skype subscriptions?

“If you have a recurring billing subscription, including a Skype Number subscription, payments after 1st July 2021 will include the new VAT rate of 7.5%.

“Example of how the price of product will change with a VAT rate of 7.5%:

1. Before 1st July 2021, a subscription costs USD 2.99 (no VAT is

charged).

2. After 1st July 2021, the same subscription will cost USD 3.21

(inclusive of applicable Nigerian VAT of 7.5%).

“If you do not agree with this change, you must cancel your subscription before 1st July 2021 by signing into your account.

“Does this impact the cost of Pay As You Go (PAYG) rates?

“Yes. From 1st July 2021, PAYG calling rates will include a VAT rate.

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Reps To Investigate Subsidy Regime From 2017 To 2021

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Reps To Investigate Subsidy Regime From 2017 To 2021

The House of Representatives on Wednesday resolved to set up an ad-hoc committee to investigate the petroleum products subsidy regime from 2017 to 2021.

The resolution followed a motion by Honourable Sergius Ogun who stated that component costs in the petroleum products subsidy value chain claimed by the Nigerian National Petroleum Corporation (NNPC) is highly over-bloated while the transfer pump price per litre, used by the NNPC in relation to Petroleum Pipeline Marketing Company (PPMC), is underquoted.

The lawmaker described this as fraudulent while also expressing worry that the subsidy regime has been used by the NNPC and other critical stakeholders to subvert the nation’s crude oil revenue to the tune of over $10 billion.

The committee is to report back to the House within eight weeks for further legislative action.

Wednesday’s move by the lawmaker came on the same day that the Chief Executive Officer (CEO) Mele Kyari ruled out the possibility of a subsidy for diesel.

He made the comments while appearing before the House of Representatives Committee on Downstream, alongside the CEO of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, among others.

“In our country today, we do not produce AGO and we regret that our refineries are not working,” he said. “Are we doing anything about it? Yes. I have heard the honourable members lamenting; yes, they (the refineries) are not working.

“This is the truth. I don’t want to bore you with why they are not working, but they are not working; I admit they are not working but we regret it. I will invite this committee at your convenience to join us to see how much work we have done to get them back to work, but they will not come back tomorrow.

“They will not! You cannot start it tomorrow. We regret this; we regret this situation, and we are doing everything possible. As a matter of fact, we have decided to do a quick fix for the Warri refinery. The reason is very simple: we don’t even want to go the long route of doing comprehensive turnaround maintenance because we are concerned.”

 

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2023: Presidency Must Return To Southern Nigeria, Fayose Insists

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2023: Presidency Must Return To Southern Nigeria, Fayose Insists

A former governor of Ekiti State Ayodele Fayose has insisted that the southern part of Nigeria must produce the country’s president in 2023.

Fayose, a two-time governor under the Peoples Democratic Party (PDP), said this in a series of tweets on his official handle on Wednesday, pinning his argument on the party’s constitution.

“The PDP Constitution provides for a rotational Presidency. Section 3(c) provides that the Party shall pursue its aims & objectives by “adhering to the policy of the rotation & zoning of Party & Public elective offices in pursuance of the principle of equity, justice, and fairness’,” Fayose maintained.

“The current President of Nigeria is a 2-term Northern Presidency, thus implying that it MUST be a Southern Presidency in 2023 or NOTHING. Awa ‘South’ lo kan’. Nigerians should await details soon.”

Fayose, who contested the PDP presidential primary, lost out to former Vice President Atiku Abukar in the exercise held earlier this month.

He has been one of the strong advocates for a power shift to southern Nigeria despite the party Atiku from the northern region, as the party’s flagbearer.

Governor Nyesom Wike of Rivers State, who also lost in the exercise, had campaigned, among others, based on a power shift to the south.

The ruling All Progressives Congress (APC), however, is fielding a southerner – Bola Tinubu – as its presidential candidate to honour the power-sharing deal called zoning between the north and south.

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Senate confirms Buhari’s ministerial nominees

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Senate confirms Buhari’s ministerial nominees

The senate has confirmed seven persons nominated by President Muhammadu Buhari for ministerial positions.

The upper legislative chamber confirmed the nominees on Wednesday after they were screened by the “committee of the whole” chaired by Senate President Ahmad Lawan.

The ministers-designate will replace those who resigned to pursue political bids.

Rotimi Amaechi, Ogbonnaya Onu, Godswill Akpabio and Emeka Nwajiuba are some of the ministers who resigned to pursue presidential bids.

The ministers confirmed on Wednesday are Henry Ikoh (Abia), Umana Okon Umana (Akwa Ibom), Ekuma Joseph (Ebonyi), Goodluck Nana Obia (Imo), Umar Ibrahim Yakub (Kano), Ademola Adewole Adegorioye (Ondo), and Odo Udi (Rivers).

During screening, Ikoh said as a way of tackling employment in the country, “technical” graduates can be job creators.

“On the unemployment situation, we need more technical graduates to do most of the things we are doing right now. If you are a technical graduate, you can employ yourself and employ others,” he said.

On his part, Umana said the country could boost its foreign exchange earnings with its free trade zones.

“On the issue of how to boost foreign exchange, I want to say that even the free zones platform is a veritable platform for this,” he said.

“The free zone is a platform that can drive production because when you produce for export, you earn foreign exchange.”

Nakama said the federal government must be ready to make some compromise to end the strike by the Academic Staff Union of Universities (ASUU).

“On tackling the issue of ASUU, my answer is that there will be leave of compromise. Government and ASUU will have to come to a compromise and through this, we will able to solve these incessant strikes once and for all,” he said.

The remaining four nominees were asked to “take a bow and go” on the grounds of their experience.

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