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UK agrees to end tax on US tech giants when global deal takes effect

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UK agrees to end tax on US tech giants when global deal takes effect

The UK has agreed to phase out its tax on US tech giants such as Google and Facebook, averting the threat of retaliatory tariffs from the United States.

A deal between the two countries will keep the digital services tax in place until 2023, when it will make way for a newly agreed global tax system.

The UK, US, Austria, Britain, France, Italy and Spain all reached an agreement on Thursday on the transition from national digital services taxes contested by Washington to a new global tax deal.

The agreement was reached after 136 countries agreed on a plan under which large multinational companies pay tax in the countries where they do business, and committed themselves to a minimum 15% corporation tax rate.

The UK’s digital services tax was introduced in April last year and charges 2% on the gross revenues of the digital titans.

The Treasury said on Thursday that it had convinced Washington not to levy tariffs in retaliation for the tax, which ultimately hits many US companies hardest.

But in return it has agreed to remove the tax in time in favour of the global solution. This “was always the UK’s intention”, the Treasury said.

“The UK has been spearheading the push for an international solution to the challenge of taxing technology multinationals for nearly a decade, with the chancellor making securing a global agreement a key priority of the UK’s G7 presidency,” the department said. “The credit system provides a fair and sustainable solution.”

Discussions are set to continue in the coming months as world leaders figure out how to implement the tax.

The chancellor, Rishi Sunak, said: “Following the landmark deal achieved earlier this month, I am delighted we have agreed a way forward on how we transition from our digital services tax to the newly agreed global tax system.

“This agreement means that our digital services tax is protected as we move to 2023, so its revenue can continue to fund vital public services.”

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Governor Ortom Mourns Elder Statesman, Paul Unongo

Governor Samuel Ortom of Benue State has expressed deep pains over the death of an elder statesman Dr Paul Unongo, saying “we have lost a pathfinder and leader of an inestimable value.”

Unongo, a former Minister of Power and Steel in the Second Republic, died at 87 in Jos, Plateau State on Tuesday.

Ortom’s Chief Press Secretary, Mr. Nathaniel Ikyur on Wednesday in Makurdi quoted his principal in a statement, describing Unongo him as a father figure who led the emancipation of the ordinary citizens without ethnic or religious barriers.

“The leadership role Unongo played in the political evolution of Nigeria cannot be forgotten in a hurry.

“He was a mentor to many leaders of today who have great ideas for the socio-political and economic development of the country.

Ortom said Benue’s Iroko tree and one of the last icons of political leadership in Nigeria has fallen, adding that Unongo’s contributions to the politics of the country from post-independence till date cannot be quantified.

“Indeed the state has lost a leader and mentor. His death has created a vacuum that will be difficult to refill.

“We shall miss his intellect, great ideas, oratory prowess and immense capacity for mobilisation and organisation of the people.

“I am consoled that Unongo’s legacies of patriotism, pan Nigerian and philanthropy will endure.

“The state will do the needful to immortalise Unongo for his selfless services and contributions to the development of the state,”Ortom said.

He prayed to God to grant the deceased eternal rest and the immediate family the fortitude to bear the loss.

Unongo too from over Maitama Sule as the chairman of the Northern Elders’ Forum. In 2017.

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BREAKING: Court Jails Student Over Tweet On Aisha Buhari

An Abuja court has sent a university student, Aminu Muhammad, to prison over a post on Twitter mocking first lady Aisha Buhari.

The student, according to BBC Hausa Service, was sent to prison on Tuesday.

The student’s lawyer, CK Agu, told BBC that the judge has refused to grant his client bail.

Mr Aminu was remanded in prion custody till December 5, 2022, the lawyer said.

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Top ISWAP Commander Killed In Airstrike In Lake Chad Region

A top commander of the Islamic State of the West African Province (ISWAP), Muhammad Malik has been killed by troops of the air task force in the Lake Chad region.

Zagazola Makama, a publication focused on the Lake Chad region reported that Malik died on November 29 from the fatal injuries he sustained during the attack.

Nigerian troops were said to have launched a coordinated intelligence-led aerial and ground operation and targeted the jihadist group’s location in the Sabon Tumbun area of Lake Chad on November 24.

This attack was also said to have led to the killing of scores of fighters.

Malik is said to have been a member of the Shura Council in Marte before he went for a course in computer engineering and improvised explosive device (IED) making, sponsored by ISIS in Somalia.

On his return, he reportedly established IED training units where fighters were trained in deploying explosives during attacks.

In the last few months, the Nigerian military has been recording a series of successes in the fight against insurgency in the Lake Chad region and other northern states.

Troops had recently repelled an attack by insurgents at Wawa cantonment in Borgu LGA of Niger state as well as the killing of three commanders of ISWAP in Borno.

 

 

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