Business
Google, Facebook, Others Pay N2.55tn Tax In Six Months
A statistical data from the National Bureau of Statistics (NBS) has revealed that Google, Netflix, Facebook and other foreign companies operating in Nigeria paid N2.55trillion in taxes to the Federal Government in the first six months of 2024.
This amount, according to the statistics, represents an increase of 158.76 per cent from N985.27billion collected in the preceding period of 2023, and the figure includes Company Income Tax (CIT) and Value Added Tax (VAT).
The Federal Inland Revenue Service (FIRS) had earlier disclosed that the CIT is a 30 per cent tax imposed on companies’ profit, and VAT is a 7.5 per cent consumption tax paid when goods are purchased, and services are rendered and borne by the final consumer.
In 2020, the Federal Government had indicated plans to begin tax collection from foreign digital service providers offering services and earning revenue in naira due to its high acceptance by the Nigerian populace.
Some of these service providers, which are video streaming sites, social media platforms, and companies that offer downloads of digital content, are expected to pay digital tax to the FIRS.
Netflix, Facebook, Twitter, among others, which have been operating without a physical office in Nigeria, offer digital video and advertising services to Nigerians.
Also, in January 2022, the Federal Government disclosed that it would charge offshore companies providing digital services to local customers in Nigeria a six per cent tax on turnover as provided in the 2021 Finance Act.
A breakdown of the reports showed that the companies paid N1.72trillion as CIT while N831.47billion was collected as VAT between January and June 2024.
On a quarterly basis, Nigeria’s earnings from CIT increased by 87.2 per cent from N598.13billion in first quarter to N1.12trillion in the second quarter.
This has revealed that the amount was the highest sum paid by the companies, contributing more than 45.3 per cent to the N2.4trillion collected in the second quarter.
A breakdown of VAT showed that Nigeria earned N435.73billion in Q1 and N395.74billion in Q2, marking a reduction of N39.99billion.
Recall that the Minister for Finance and Coordinating Minister of the Economy, Wale Edun, had recently revealed that the Federal Government’s revenue for the first quarter of 2024 increased to N9.1trillion, more than doubling the amount recorded in 2023 without increasing taxes.
Corlins Walter
Kenya made it a clean sweep at the Berlin Marathon with Sabastian Sawe winning the men’s race and Rosemary Wanjiru triumphing in the women’s.
Sawe finished in two hours, two minutes and 16 seconds to make it three wins in his first three marathons.
The 30-year-old, who was victorious at this year’s London Marathon, set a sizzling pace as he left the field behind and ran much of the race surrounded only by his pacesetters.
Japan’s Akasaki Akira came second after a powerful latter half of the race, finishing almost four minutes behind Sawe, while Ethiopia’s Chimdessa Debele followed in third.
“I did my best and I am happy for this performance,” said Sawe.
“I am so happy for this year. I felt well but you cannot change the weather. Next year will be better.”
Sawe had Kelvin Kiptum’s 2023 world record of 2:00:35 in his sights when he reached halfway in 1:00:12, but faded towards the end.
In the women’s race, Wanjiru sped away from the lead pack after 25 kilometers before finishing in 2:21:05.
Ethiopia’s Dera Dida followed three seconds behind Wanjiru, with Azmera Gebru, also of Ethiopia, coming third in 2:21:29.
Wanjiru’s time was 12 minutes slower than compatriot Ruth Chepng’etich’s world record of 2:09:56, which she set in Chicago in 2024.