FG Begins Implementation of Electronic Transfer Levy Regulation 2022, Debits Millions of Nigerians
- The Nigerian government has started charging receiving accounts Electronic Transfer Levy
- The Levy is part of the 2021 Finance Act signed into law by the Minister of Finance
- The regulation mandates receiving banks to debit N50 for every N10,000 received
PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!
The Nigerian government have begun the implementation of the Electronic Transfer Levy which was recently signed by the Minister of Finance, Budget and National Planning, Zainab Ahmed.
Ahmed signed the regulation pursuant to Section 89A(3) of the Stamp Duties Act Cap. S8, Laws of the Federation of Nigeria, 2004 as amended by the Finance Act of 2021.
Source: Getty Images
Provisions of the Act
The regulation provides guidance for the imposition, administration, collection and remittance of the Electronic Money Transfer Levy contained in the 2020 Finance Act.
PAY ATTENTION: Subscribe to Digital Talk newsletter to receive must-know business stories and succeed BIG!
According to reports, the regulations provide for a single and one-off levy of N50 on the recipient of any electronic transaction or N10,000 or above.
For any equivalent of receipts carried out in other currencies, the levy will be charged at the exchange rates determined by the Central Bank of Nigeria (CBN).
The regulation appoints the Federal Inland Revenue Service (FIRS) as the administrator of the Levy with the responsibility to check, collect and give an account of the levy.
It also mandates receiving banks to collect and remit to the FIRS within 24 hours or the next working day. The receiving bank is required to deduct the levy across the account in the event that the customer does have a bank account with the bank.
Nigerians raise alarm
Many Nigerians raised alarm on social media on Sunday, January 8, 2023, when they saw that their accounts were debited with various sums.
The debit took them unaware as there has been no mention of the levy in any media reports.
According to them, the levy is against the cashless policy of the CBN and will encourage cash transactions.
KPMG, the audit and tax advisory company commended the Minister of Finance for the implementation of the Levy.
CBN may extend deadline for deposit of old naira notes as scarcity of new notes persist, gives banks orders
Legit.ng reported that the Central Bank of Nigeria (CBN) on Friday, January 6, 2023, ordered commercial banks to load only N200 notes on ATMs across the country.
The move follows several complaints from depositors who are yet to access the new notes since they began circulation on December 15, 2022.
The order by the apex bank led to some banks stopping over-the-counter issuance of the new notes.
Source: Legit.ng
