For some time, the sports betting industry in Nigeria has actually been rife with the news that the Federal Inland Revenue Solution (FIRS) had actually ended strategies to present the 7.5% value-added tax to wagering tasks within the nation. Under the recommended strategy, punters placing a bet of 1,000 Naira would have needed to pay 1,075 Naira to catch the 7.5% Value-added.
The news had sent the sector into panic as the economic facts of the country continue to influence the revenue of services in different industries. In the sports betting sector, specific punters as well as operators have continued to argue about the proposed growth; this thus prompted a stakeholders meeting where representatives of sports betting companies and operators met to present their debates.
Under their umbrella body (Association of Nigerian Bookies), sporting activities betting drivers (represented by Miss Fadekemi Akeju as well as Mrs Bimpe Akingba) made a discussion on the impracticability of the introduction of a 7.5% VAT on sporting activities betting. The betting operators mentioned examples when people bet regarding 100,000 Naira to win 105,000 Naira and asked yourself just how functional that would be if the punter needed to pay 7,500 Naira as BARREL to obtain earnings of 5,000 Naira.
Talking at the stakeholders meeting which happened on Wednesday, 26th February at the National Assembly quarters in Abuja, Director General of the National Lotto Compensation Mr Lanre Gbajabiamila concurred that it was unwise to enforce VAT on betting stakes, his guidance was to maybe discover the possibility of billing VAT on jackpots prior to they are paid to punters. A banker (name withheld) that is a normal with one of the sporting activities betting companies in Nigeria, claimed there was no other way he would proceed putting VAT if the plan becomes a reality. He added that the federal government needs to concentrate on improving the economic climate, instead of attempting to tax obligation every opportunity where individuals boost their diminishing revenue.
A representative of the FIRS, Pam Davou, Director, collection that was at the meeting claimed he appreciated the views increased and suggested a continual conversation in between drivers and also FIRS to find a viable option.