The Nigerian government has introduced a new and automated collection process for the lottery and gaming and gambling industry. The new collection process will make it easy both for the government and the operators to calculate Value Added Tax (VAT) on lottery and gambling products and services.
The new process could also help the government cut losses on the VAT tax collections and even the customers as they would now not be overcharged by the operators.
Federal Inland Revenue Service (FIRS) Chairman Tunde Fowler also reassured the operators and stakeholders in the lottery and gambling industry in Nigeria that they are working towards introducing new measures to improve the existing infrastructure and that all their concerns will be addressed with higher transparency in the process.
Explaining the new automation process, he said, “This is not a tax on the business, but on a bettor, who hopes to win. You also have to realize that 85% of VAT goes to the state, which is supposed to be closer to us. In this case, we are all winners.”
The event which saw the launch of the new automation collection process was attended by several top government officials including the Director-General of NLRC, Lanre Gbajabiamila; the representatives of the Senate Committee Chairman on Sports; the Chairman, House Committee on Governmental Affairs.
Gbajabiamila, in his address at the event, said that often gambling operators collect VAT tax from the customers, but it doesn’t reach the government. He pointed out that the government has been losing a significant amount of tax revenue and emphasized that the new automated collection process will help to increase tax revenues.