National Lottery Regulatory Commission Counters FIRS Over Collection Of Taxes

The National Lottery Regulatory Commission (NLRC) has countered the Federal Inland Revenue Service (FIRS) against the revenue agency’s commencement of direct collection of taxes from Online Gaming Operators.

OPTIMUM TIMES recalls that the FIRS had stated that it has commenced the deduction of taxes at transaction points from Online Gaming Transactions using the Sentinal National Payment Gateway and Electronic Solution.

But NLRC maintained that Online Gaming Operators in Nigeria who are duly licensed and tax compliant are not subject to the tax collection referred to by the FIRS.

According to a statement endorsed by the NLRC Director General, Lanre Gbajabiamila, the said collection of taxes by FIRS “only applies to remote gaming operators operating strictly outside the jurisdiction of Nigeria”.

Mr. Gbajabiamila expressed regrets over misconceptions the FIRS statement have caused to esteemed Gaming Operators and other stakeholders in the industry in Nigeria.

He noted that the FIRS statement as published has created uncertainty, panic and confusion in the Gaming Industry in Nigeria as to the propriety and justification of this new tax regime.

Therefore, he said that it has became necessary for the NLRC as the Agency created by law to regulate Lottery/Gaming in Nigeria to make the clarifications.

FIRS in a Public Notice signed by its Executive Chairman, Muhammad Nami, the FIRS while directing full compliance by the online gaming community, explained that the Sentinal National Payment Gateway was a transaction processing system that enables Integrated Payment Services Providers to deduct taxes at the points of transaction and immediately remit the tax deducted to the government’s treasury.