The Federal Government has provided clarification over the weekend about the debate around the collection of taxes from internationally recognized online gambling providers.
The explanation followed a recent announcement by the Federal Inland Revenue Service, FIRS, that it has started levying internet gaming companies directly for taxes.
Since the NLRC is the organization designated by law to handle the operations of the gaming sector in the nation, the FIRS statement is reported to have confounded the operators in the gaming industry.
The FIRS statement explains the type of gaming operators that are affected, according to the NLRC, thus there is no need for concern.
In a statement in Abuja, the Director-General of NLRC, Lanre Gbajabiamila, explained that the FIRS press release only applies to remote gaming operators operating strictly outside the jurisdiction of Nigeria.
The statement read in part: “The attention of the Management of the National Lottery Regulatory Commission (NLRC) has been drawn to several publications on various media platforms purportedly emanating from the Federal Inland Revenue Service (FIRS) with the caption “FIRS commences direct collection of taxes from online gaming operators.”
“These press articles have created uncertainty, panic, and confusion in the Gaming Industry in Nigeria as to the propriety and justification of this new tax regime.
“Therefore, it has become necessary for the NLRC as the Agency created by law to regulate Lottery/Gaming in Nigeria to make the following clarifications: a. Online Gaming Operators in Nigeria who are duly licensed and tax compliant are not subject to the tax referred to in the aforesaid publication; b. The FIRS press release only applies to Remote Gaming Operators operating strictly outside the jurisdiction of Nigeria.
“The NLRC deeply regrets any misconceptions these publications have caused to our esteemed Gaming Operators and other stakeholders in the industry in Nigeria. “
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