Africa Business Radio

Experts in the telecommunication industry have said the move by the Federal Government to tax social media companies is right because the companies generate commercial revenues from the nation.Meta says 7.5 per cent value-added tax will be applied on sales of ads to advertisers from January 2022, and this applies to all non-resident businesses that provide digital service in the nation.The National Coordinator, Alliance for Affordable Internet, Olusola Teniola, noted that the move by the FG was aimed at increasing its revenue through taxes. According to Teniola, Nigeriaʼs approach is very similar to that of Ghana.He says since the VAT would naturally be transferred to the consumer, a way to cushion this impact, especially as the increase in digital transactions would continue, had to be adopted too.