The Federal Government has reviewed the fifty naira stamp duty charges on electronic payments in the country after receiving backlash from Nigerians and industry stakeholders.
A Financial Bill currently before the National Assembly stated the fifty naira charge would be imposed on transactions above ten thousand naira as against payment above one thousand naira that had taken effect across the country in September.The bill exempted bank transfers between two accounts owned by the same person or organization.The new bill aims to repeal a provision of the Stamp Duty Act 2014, which had a threshold for receipts chargeable with stamp duty as four naira and above.
The Central Bank of Nigeria in a circular to deposit money banks, processors and switches on September seventeen, 2019 authorized banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions.Meanwhile, the directive was condemned by mobile money agents, retailers, merchants and bank customers who said it would discourage the cashless transaction and financial inclusion agenda of the Federal Government.
Analysts at PricewaterhouseCoopers, in their assessment of the review, said the increased threshold would benefit small businesses that had started transferring the fifty naira duty to their customers.
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